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The illegal practice of inducing homeowners to sell their properties by making representations about the prospective entry of persons of a certain race/national origin into the neighborhood is also called:

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Final answer:

Blockbusting is the illegal practice of inducing homeowners to sell their properties by making representations about the prospective entry of persons of a certain race/national origin into the neighborhood. It involves exploiting racial fears and encouraging white flight.

Step-by-step explanation:

The illegal practice of inducing homeowners to sell their properties by making representations about the prospective entry of persons of a certain race/national origin into the neighborhood is also called blockbusting. Blockbusting is a tactic used by real estate agents and speculators to exploit racial fears and encourage white flight. They would announce their intention to sell a home in an all-white neighborhood to a minority family, causing panic among white residents and leading them to sell their homes at prices below their value.

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