Final answer:
Blockbusting is the practice of inducing panic home-selling by falsely claiming that people of a different race, religion, color, etc., are moving into the area. Hence, option (A) is correct.
Step-by-step explanation:
The practice of inducing panic home-selling by falsely claiming that people of a different race, religion, color, etc., are moving into the area is called blockbusting. Blockbusting is the practice of real-estate agents and speculators playing on white fears by announcing their intention to sell a home in an all-white neighborhood to a minority family. This is done to encourage 'white flight' and allow speculators to purchase homes from panicked whites at prices well below the home's value, which are then sold for a huge markup to minority families with few housing options.
The goal is to convince homeowners to sell their properties quickly and at lower prices by creating fear of an imminent change in the neighborhood's racial or ethnic composition. Blockbusting perpetuates housing segregation and discrimination, violating fair housing principles.