Over the last decade, larger student numbers, reduced resources and increasing use of new technologies have led to the increased use of multiple-choice questions (MCQs) as a method of assessment in higher education courses. This paper identifies some limitations associated with MCQs from a pedagogical standpoint. It then provides an assessment framework and a set of feedback principles that, if implemented, would support the development of learner self-regulation. The different uses of MCQs are then mapped out in relation to this framework using case studies of assessment practice drawn from published research. This analysis shows the different ways in which MCQs can be used to support the development of learner self-regulation. The framework and principles are offered as a way of helping teachers design the use of MCQs in their courses and of evaluating their effectiveness in supporting the development of learner autonomy. A key message from this analysis is that the power of MCQs (to enhance learning) is not increased merely by better test construction. Power is also achieved by manipulating the context within which these tests are used. (Contains 1 table and 2 figures.)