It can be compared with a criterion-referenced test, which measures a candidate's mark against a series of criteria and produces a description of level based on those criteria. Norm-based tests are useful for indicating the level of an individual learner in comparison with others.
Example
The SAT test in the United States is a norm-referenced test.
See also:
https://www.teachingenglish.org.uk/article/achievement-test
https://www.teachingenglish.org.uk/article/criterion-referenced-test
https://www.teachingenglish.org.uk/article/diagnostic-test
https://www.teachingenglish.org.uk/article/objective-test
https://www.teachingenglish.org.uk/article/proficiency-test
https://www.teachingenglish.org.uk/article/subjective-test