Schools rarely base intelligence off of "street-smarts", which is more common sense and learning things that you don't learn in school and being prepared for the potential dangers in society. For example, knowing how to get anywhere in your city with out a map and knowing what streets are more dangerous than others.
Both of those type of "smarts" show intelligence, but the school system only focuses on how well you can memorize things and I think that's unfair, especially for the kids who don't have as many opportunities to learn how to memorize. Their whole lives they became A students on the street and the SAT's don't test that.
I see what you are trying to say, that both types of knowledge are important. However, I disagree with how you relate them to intelligence. Intelligence for example is how quickly you would learn how to be street smart and adapt to problems, not how street smart you are. So basically intelligence is learning and adapting, while things like street smarts is knowledge
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