Final answer:
The question type where each correct answer selection yields equal points and each incorrect selection deducts the same amount is a multiple-choice question (MCQ), commonly utilized in assessments to gauge students' understanding on various topics.
Step-by-step explanation:
The question type described is a multiple-choice question (MCQ). This format is known for having several potential answers, out of which one or more may be correct. The grading system that awards and subtracts equal fractions of points based on the correctness of each answer selection is commonly used to ensure that students demonstrate a comprehensive understanding of the material. For instance, if there are four possible choices and two are correct, choosing one correct answer would result in receiving half of the available points for that question, while selecting an incorrect answer would subtract that amount, discouraging guessing.
Additionally, MCQs may vary in difficulty and are often used in sections of assessments to test students' knowledge and understanding of specific subject matter, such as the Engineering Design Process in a STEM-related course. The grading rubric indicates how accurately and thoroughly students need to respond to score the maximum points on their quizzes, thereby promoting detailed and accurate responses to demonstrate their grasp of the content.