Decide on what you need to know and what type of standard do you want to measure against. Then, select either a formal or informal assessment to indicate to you what you want to know. Let's look at a couple of examples:
a. The teacher wants to know if the student understands the economic vocabulary she just taught. The teacher would use an informal measure or teacher developed test that asks the student to define or use these terms.
b. The teacher wants to know if the student understands the economic vocabulary she just taught and how does the student compare to students in the nation on vocabulary development. The teacher would administer a vocabulary test that was standardized on a national population or a formal test.