Further to Bradley's reply, perfect form is required at MMC. This is a consequence of Rule #1 (otherwise known as the Envelope Rule) in which a size tolerance requires that the feature not violate an imaginary boundary of perfect form at MMC. For example, if a hole has a size tolerance of 1.000 +/- .010, its surface must not violate a perfect cylinder of diameter .990 (represented by a .990 gage pin being able to pass completely through). Thus if the hole's cross-sectional diameter is .990, its form characteristics (circularity, surface line straightness, derived median straightness, cylindricity) must be perfect in order for the gage pin to pass through. If the hole's cross-sectional diameter is larger than .990 (say .995), its form characteristics can be out by as much as .005. At the LMC diameter of 1.010, the form characteristics can be out by as much as .020 (the size tolerance).
Back to the original question, a diameter tolerance gives an equal control over circularity. A diameter tolerance of +/- .010 would limit the circularity error to .020 at worst. There is no assumed relationship between circularity and the nominal diameter.
Evan Janeshewski
Axymetrix Quality Engineering Inc.