Pointing out that student testing in literature should take into account each school's philosophy concerning the literature curriculum, this digest explores the broad domain of literature study and looks at specific objectives and outcomes in literature testing. The digest discusses answers to the following questions: (1) Where are the broad thrusts of the curriculum in literature? (2) How can the content and objectives of the literature curriculum be specified? (3) How are test questions developed? and (4) How is student performance judged? A chart of content areas and behaviors accompanies the text. (EL)