In history, there are times when it is appropriate to have students name dates, events, and personages. In psychology, recall of pertinent experimentation of some aspect of behavior may be crucial. In virtually all disciplines, factual knowledge is important. Theories have to be grounded in data to be valid, so the first step in creating them in many disciplines is to learn certain facts. It is certainly legitimate to test if students have done so, and multiple choice or other objective tests are excellent for such a purpose as they allow the tester to get at a great many facts.
Students have to learn to apply facts if they are to be remembered.
However, a full assessment battery will also require students to marshal the facts to come to larger conclusions, or apply skills to new kinds of problems. This can be done by asking students to create hypotheses, to uncover assumptions behind theories, or to marshal evidence in an argument for or against a given proposition. These activities, of course, are better tested by essay writing. The challenge is to find an assessment measure which both shows what students have learned, and which itself leads to integration of knowledge. That is, the test itself should itself be a learning experience.