If a small, public university is ranked high?

does that mean that when you're applying for grad schools you'll have a better chance of getting in (all other factors equal obviously) or simply that you'll be better educated? I'm currently at the University of Minnesota in Morris (not the main campus in the Twin Cities but another campus about 3 hours away) and it's ranked in the top ten public liberal arts universities, yet it's not very difficult to get in.