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Though, in a market, when buying a product, one gets a chance to compare the product with other similar products made by several companies and this helps in choosing one that is most suitable for his requirements.

Let us take a closer look at the two concepts, absolute and relative.

When it comes to grading students too, absolute grading is used.

Absolute grading is done so that a student’s own potential can be identified.

For example, there is a concept of absolute poverty that is used in some countries to measure the economy.

In relative grading of students, the grades are set according to the highest marks for a paper. • Absolute evaluation or analysis means an individual, product, or idea is not compared with any other entity, and its performance is judged free from other criteria.

Let us see how relative perspective is used with regard to poverty in some countries.

Relative poverty is a concept where people below this threshold are compared with those lying above the poverty line, to analyze the extent to which poor household’s fall below the nation’s average income households, compare living standards and devise welfare programs to end this divide.

Relative risk is a concept where people are divided into groups based upon their habits and lifestyles.

For example, smokers and non-smokers are two distinct groups that have different relative risks to heart diseases.

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