Final answer:
The term that describes the assignment of students to specific education programs and classes based on their academic merit or potential is 'tracking'. This formalized sorting system can perpetuate inequalities and impact students' educational opportunities and outcomes.
Step-by-step explanation:
The term that describes the assignment of students to specific education programs and classes on the basis of test scores, previous grades, or perceived ability is 'tracking'. Tracking is a formalized sorting system that places students on different 'tracks' based on their academic merit or potential. This system can perpetuate inequalities as it often leads to the separation of students into advanced or low achiever groups, which can impact their educational opportunities and outcomes.