YouTube has come out with a new feature (beta mode) and it will work awesomely great with education.
YOUTUBE QUESTIONS EDITOR!!
You are able to add MCQ type question(s) to your video. There is also sub-function:HINT (in case your student needs help to answer)
Then your students can choose the possible answer.
You can add questions along the duration of the video.
To try this great feature, you need to enable it by going to this link: http://www.youtube.com/video_questions_beta
Remember, you must have your own uploaded videos in order to use this function.
Since it is in BETA MODE, some parts are not stable.
Possible activities for this:
Put up a few questions. Ask students to choose answer and use the comment function to provide the reasons for the answer.
If your students are pre-service teachers, you can ask them to create MCQ questions for the video. Take opportunity on the comment and like function to evaluate on that skill via peer learning.
Hope this NEW FUNCTION sticks around for good.