Exams only require students to write and deliver whatever they have studied about subjects during the class only
Exam cannot justify how a student will implement their knowledge about the subject in real life
Also, Exam is structured with limited time and students are required to write as per the questions asked in the test paper and within the time limit. Thus, Exams only need students to write whatever they have memorised about the subject as quickly as possible. This does not measure their knowledge.
All questions asked in the test paper are only based on concepts in the book and it has no direct relationship with the real life situations which students face in everyday life.
Knowledge retention is a serious concern in academic pursuits and is studied quite frequently by retesting students. However if your exam is an IQ test, Such as Raven's Progressive Matrices test, Then it is gauges pattern recognition and not longterm memory. It is thus the results are highly replicable than compared to some specialized skill or knowledge test.
IQ is one of the most replicable concepts in social science and can predict many life outcomes. The great thing about the Matrix test is that it is language independent. Anyone can participate in the exam.
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One is a reproductive test, Which does completely measure your memory. An other test, And I specifically have maths in mind, Tests your problemsolving skills. My teachers even discourage to learn certain objects by heart.
Without testing students wouldn't be encouraged to study and absorb the teaching materials. Furthermore, Why would they test it, We have a gateway to the largest library in the world just in our pockets. With a phone all answers are just a few taps away.
Yes it is possible to just remember the answers but there comes a point where you cannot remember the answers to complex questions and where guessing will not work.
The SAT sell the answers but if they were to randomize the questions and not give them out they can make them effective.
Testing is the future.