Which of the following correctly identifies a difference between taste-based discrimination and statistical discrimination?
A) Taste-based discrimination is observed in the service sector, whereas statistical discrimination is observed in the manufacturing sector.
B) Taste-based discrimination is observed in the manufacturing sector, whereas statistical discrimination is observed in the service sector.
C) Employers engaging in taste-based discrimination are willing to forgo profits, whereas employers engaging in statistical discrimination are trying to enhance profits.
D) Employers engaging in statistical discrimination are willing to forgo profits, whereas employers engaging in taste-based discrimination are trying to enhance profits.

Question

Quizplus · Accepted Answer

Taste-based discrimination involves a bias against a group that leads employers to make decisions that may not be economically rational, such as hiring a less qualified candidate due to personal prejudices, even at the cost of lower profits. Statistical discrimination, on the other hand, involves making decisions based on group averages or statistics, such as assuming individuals from certain groups have specific characteristics, with the intention of making profit-maximizing decisions, not out of personal bias but rather based on perceived statistical realities.

Which of the Following Correctly Identifies a Difference Between Taste-Based