The paper considers the controversies of standardized tests and group differences as they relate to the formation of public policy. The overlapping or confounding issues of standardized tests and group differences have long since become matters of public policy. Neither separately nor jointly can the issues be resolved within the confines of professional, technical, or administrative judgment. Unless suitable policy alternatives can be identified and deliberately chosen, the controversies that currently prevail in test usage and group measurement will not be resolved. After discussing the nature of the controversy, heredity versus environment, the importance of IQ, and the standard in testing, the author suggests six alternatives, although not exhaustive, which may be discussed as policy solutions that would presumably resolve the issues and controversies involved. These alternatives include: (1) a moratorium on testing, (2) the adjustment of group differences, (3) new rationales for testing, (4) the teaching of intelligence, (5) alternative schooling, and (6) adaptive treatment. Each alternative is discussed in some length. (RC)