Paul wants to renovate his home and is accepting bids from different contractors.An African-American contractor bids $5,000 for the job,and a Caucasian contractor bids $5,200 for the job.Paul hires the Caucasian contractor.This is likely due to ________.

Question

Quizplus · Accepted Answer

The scenario suggests that Paul hired the Caucasian contractor not because of their cost-effectiveness but based on his personal preference or taste. This is indicative of taste-based discrimination, where people discriminate based on their preconceived notions or biases. There is no evidence of compensating wage differentials, statistical discrimination, or gender wage gap in this scenario.

Paul Wants to Renovate His Home and Is Accepting Bids