Which example best describes racism?

The choice that best describes racism focuses on assigning value to individuals based on their physical characteristics and skin color. Racism involves the belief that certain races possess distinct characteristics and, as a result, may be inherently superior or inferior to others. This context highlights how people are judged and discriminated against primarily because of their race or ethnicity, which perpetuates stereotypes and systemic inequalities.

While the other options address forms of discrimination, they are not specific to racism. Judging based on cultural background relates more to ethnocentrism or cultural bias, which, although harmful, differs from racism's focus on race itself. Similarly, discrimination based on financial status relates to socio-economic status and classism, rather than racial discrimination. Preference for certain genders over others touches on gender bias and sexism rather than issues regarding race. Therefore, assigning value based on physical characteristics and skin color most accurately encompasses the definition and implications of racism.