Disadvantages
The most serious disadvantage is the limited types of knowledge that can be assessed by multiple choice tests. Multiple choice tests are best adapted for testing well-defined or lower-order skills. Problem-solving and higher-order reasoning skills are better assessed through short-answer and essay tests. However, multiple choice tests are often chosen, not because of the type of knowledge being assessed, but because they are more affordable for testing a large number of students. This is especially true in the United States where multiple choice tests are the preferred form of high-stakes testing.
Another disadvantage of multiple choice tests is possible ambiguity in the examinee's interpretation of the item. Failing to interpret information as the test maker intended can result in an "incorrect" response, even if the taker's response is potentially valid. The term "multiple guess" has been used to describe this scenario because test-takers may attempt to guess rather than determine the correct answer. A free response test allows the test taker to make an argument for their viewpoint and potentially receive credit.
In addition, even if students have some knowledge of a question, they receive no credit for knowing that information if they select the wrong answer and the item is scored dichotomously. However, free response questions may allow an examinee to demonstrate partial understanding of the subject and receive partial credit. Additionally if more questions on a particular subject area or topic are asked to create a larger sample then statistically their level of knowledge for that topic will be reflected more accurately in the number of correct answers and final results.
Another disadvantage of multiple choice examinations is that a student who is incapable of answering a particular question can simply select a random answer and still have a chance of receiving a mark for it. It is common practice for students with no time left to give all remaining questions random answers in the hope that they will get at least some of them right. Many exams, such as the Australian Mathematics Competition, have systems in place to negate this, in this case by making it more beneficial to not give an answer than to give a wrong one. Another system of this is formula scoring, in which a score is proportionally reduced based on the number of incorrect responses and the number of possible choices. In this method, the score is reduced by the number of wrong answers divided by the average number of possible answers for all questions in the test, W/(c-1) where w=number of wrong responses on the test and c=the average number of possible choices for all questions on the test. All exams scored with the three-parameter model of item response theory also account for guessing. This is usually not a great issue, moreover, since the odds of a student receiving significant marks by guessing are very low when four or more selections are available.
Additionally, it is important to note that questions phrased ambiguously may cause test-taker confusion. It is generally accepted that multiple choice questions allow for only one answer, where the one answer may encapsulate a collection of previous options. However, some test creators are unaware of this and might expect the student to select multiple answers without being given explicit permission, or providing the trailing encapsulation options. Of course, untrained test developers are a threat to validity regardless of the item format.
Critics like philosopher and education proponent Jacques Derrida, said that while the demand for dispensing and checking basic knowledge is valid, there are other means to respond to this need than resorting to crib sheets.
Despite being sometimes contested, the format remains popular due to its utility, reliability, and cost effectiveness.
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