This study looks at how testing affects critical decisions for U.S. students, focusing on the impact of testing on individual students. It examines common misuses of tests, their political and social contexts, what happens when test issues are taken to court, special student populations, social promotion, and other issues of current interest. The Committee on Appropriate Test Use of the Board on Testing and Assessment of the National Research Council adopted three principal criteria for determining whether test use is appropriate. Measurement validity, attribution of cause, and effectiveness of treatment are the criteria on which the basic principles of appropriate test use lie. The chapters of this report are: (1) "Introduction"; (2) "Assessment Policy and Politics"; (3) "Legal Frameworks"; (4) "Tests as Measurement"; (5) "Tracking"; (6) "Promotion and Retention"; (7) "Awarding or Withholding High School Diplomas"; (8) "Students with Disabilities"; (9) "English-Language Learners"; (10) "Use of Voluntary National Test Scores for Tracking, Promotion, or Graduation Decisions"; (11) "Potential Strategies for Promoting Appropriate Test Use"; and (12) "Findings and Recommendations." Each chapter contains references. (SLD)