The relationship between declining scores on national standardized tests and grade inflation is explored. Grade inflation refers to the indicated measure of evaluation of student performance having higher placement than is usual based on the performances. Data for this study were taken from the American College Testing (ACT) Program Class Profile Report for Freshmen, using the National Norms 10% Sample, the Tennessee State Composite, and the Memphis State University-Enrolled samples. Data were available beginning with 1967-68, with some missing years for some samples. Tennessee high school students showed an increase in grade point average (GPA) of 34 points in the 10 years from 1969-70 to 1978-79 and the percentage of students with GPA above 3.5 rose from 16% to 29%. ACT score means dropped two full points from 19.1 to 17.1 during the 1969-70 to 1975-76 period, and since then, they have fluctuated in the 17.4 to 17.6 area. A similar trend was seen for Memphis State University students. Observation of the most recent 3 years showed that previous movements have stopped or reversed, with some slight increases in ACT scores in 1981-82, and no apparent dramatic change in GPA for high school students. Three data tables and three graphs are provided. (SLD)