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gt7er
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spiridon
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Sleepy
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refurb
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Sleepy
I think that schools are looking to see how well you've thought through the process.

That is a huge part of it. For example, if you say

"I really like Tuck because of the rural setting, it's a huge reason why I want to go here."

then you say

"I'm also applying to NYU, Wharton and Columbia"

they'll go :???

RF
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saberprivateer
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I think that it is acceptable to dodge the question as being somewhat inappropriate. You can keep it focused on the school by talking about how you only applied to schools you'd want to attend and here are the many good reason why your school fits that bill.

Also, you should be honest. If you are interviewing at X but Y is your top choice...just tell them and be honest. The Cornell adcom I talked to will personally call you up if you say "this is my top choice" and you don't attend. Its not ethical and it is not professional. Don't do it! Yeah, they are fishing to improve their yield rate for rankings and may hurt your chances...but its about principle.

You could always turn it around on them..."I know why I'm applying X, Y, Z....what else do you think separates it from the flock?" =p