Why tests and exams are a waste of everyone's time

Not perhaps the most insightful of observations but this can technically be proven from an Economics perspective (ah, yes, the power of attending Economics classes half-asleep). Let us consider first the following analogy:

Theft, as we all know, is a problem. Besides the clear ethical issues with theft, it's an economic problem, as we need to start allocating resources in order to ensure that theft doesn't happen. For example, we need greater quantities of police, we need guard dogs, we need burglar alarms, we need guns and the works. All the resources can be devoted to something else more productive (like, say, making Krispy Kreme donuts) but have to be allocated to the prevention of theft, and thus, economic inefficiencies occur.

Similarly, if you look at tests and exams, there is absolutely no productivity gathered out of them. They're designed in a way to see if you have the information you "need" in your heads, but no knowledge is transferred or gained and in no way is someone's productivity increased as a result of testing. It's a waste of resources because the time could have been spent elsewhere (like visiting your local Krispy Kreme), we could hire less TAs and graders, we could have less quantities of teachers/professors, less red pens could be sold, etc. In a nutshell, it's economically inefficient and on that basis alone, we should do away with tests and exams.

*Yes, I know it's not a brilliantly written piece and someone's going to argue that the benefit is that grading acts as a sorting hat which acts as some form of lubricant in matching demand and supply in the job market but transaction costs are a result of inefficiencies, right? And besides, who said Economics makes sense?