What does it mean when someone says that knowledge cannot be assessed or measured without demonstration? how does this relate to academics?

This statement means that an individual cannot know what someone has learned or the amount of knowledge that one has until it is shown. Someone may learn something but others will never know they have learned it until it demonstrated. This relates to academics in that one reason students have assignments and tests is so that others understand what it is they actually have learned. Without assignments, discussions, or tests the teachers cannot know how far one has advanced in their knowledge.

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