Final answer:
Billy is demonstrating prejudice, which refers to negative attitudes towards individuals based on their group membership, as opposed to discrimination, which involves biased actions based on such attitudes.
Step-by-step explanation:
Billy is demonstrating prejudice, which is a negative attitude and feeling toward individuals based solely on their membership to a particular social group like race, ethnicity, or religion. Prejudice involves biased thoughts and beliefs about a group's characteristics and members, not necessarily associated with direct actions.
Discrimination, on the other hand, involves actions or behaviors that result from prejudiced thoughts. Discrimination might manifest in various social spheres, such as the labor market, where individuals can receive unequal pay or job opportunities due to their race or gender, regardless of having the same skill levels measured by education, experience, and expertise. Thus, while Billy's open expression of disliking and considering black people as inferior is indicative of prejudice, it would become discrimination if he acted on these beliefs to treat black individuals unfavorably.
Prejudice and discrimination are aspects of social behavior that often lead to detrimental consequences for the targeted individuals or groups, perpetuating inequality and creating barriers in society. Overt discrimination, such as segregation and unfair employment practices, as seen in the history of the U.S., are now widely viewed as unacceptable and are often illegal.