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LurkerJ said:

I don't understand. Allah says he/she is the most merciful period but he rarely shows it. Can you show me his mercy? I am not asking about the purpose of life or how it should be.


In Quran, God already answer that..
(Surat Al-`Ankabūt 29:2-3)

Do the people think that they will be left to say, "We believe" and they will not be tried?
But We have certainly tried those before them, and Allah will surely make evident those who are truthful, and He will surely make evident the liars.

I found Q&A answering your question. Somebody asking similar question like you. Please watch this. This wil answer
1) purpose of creation
2) why we been tested
http://www.youtube.com/watch?v=zKh0d7MjmbQ