What can multiple-choice items be used for?
Multiple-choice items are best used for checking whether students have learned facts and routine procedures that have one, clearly correct answer. However, an item may have two reasonable answer options. Therefore, test directions usually ask test takers to select the "best" answer. If, on a reading test, a student selected a somewhat plausible answer, does it mean that she cannot read, or that she does not see things exactly the way the testmaker does?
In some subjects, carefully written multiple-choice items with good distractors can fairly accurately distinguish students who grasp a basic concept from those who do not. Look again at the "night and day" question. Those who don't quite get it often are attracted by answer B. Those who have little or no knowledge usually select C, D or E.