Microeconomics vs. Macroeconomics

Microeconomics and Microeconomics are the subject matter of Economics. Although Microeconomics and Macroeconomics are the branches of Economics, they have essential roots in Economics. Both these branches deal with the critical aspects of economic activities, but these branches differ in the level of their working scale.

Main Difference

Microeconomics deals with the economic activities at the household or consumer level, while Macroeconomics discusses the financial activities of a larger scale like business and commercial activities. However, the branches of Economics, Microeconomics, and Macroeconomics differ in their key roles.

What is Microeconomics?

Microeconomics deals with small-level economic activities. Microeconomics contains the prefix “micro,” which means small; it implies that Microeconomics deals with small-scale economic activities. It mainly discovers the household or primary sector of the Economy. It discusses the role of every individual in economic activity and his contributions to the Economy.


  • Microeconomics considers every single person as a unit of the Economy.
  • It discusses matters on a household level.
  • It refers to the economic problems of every person.
  • Microeconomics helps economists to estimate the average income of people.


  • It is not helpful to estimate the income of far-living people.
  • Weak assumptions
  • It gives a restricted picture of the broader Economy.
  • No efficient estimations

What is Macroeconomics?

Macroeconomics is the branch of economics that deals with the whole Economy as a single unit. As the word MacroEconomics contains the prefix “Macro,” which means ample; so, it implies that Microeconomics deals with economic activities on a larger scale.

Macroeconomics is vital in forming economic policies as it provides financial data.


  • It estimates the economic growth figures
  • It finds the inflation rate and the literacy rate of the country
  • Useful in the formation of economic policies
  • It determines the income of the country


  • It counts low and upper-class people at the same level
  • It overgeneralizes the Economy
  • Its estimations and policies may be wrong
  • It provides average estimation ignoring individual interests.

Key Differences between Microeconomics and Macroeconomics

  1. Microeconomics deals with economic matters on a small scale, while Macroeconomics deals with more significant financial issues.
  2. Microeconomics has a narrow perspective, while Macroeconomics has a broad perspective.
  3. It deals household sector, while Macroeconomics deals with the business sector.
  4. Microeconomics deals with the Primary sector, while Macroeconomics deals with the higher sectors.
  5. It solves microeconomic issues, while Macroeconomics deals with significant economic problems.
  6. Microeconomics, in contrast, Macroeconomics allocates resources more efficiently.
  7. In contrast, Microeconomics deals with the foreign sector.
  8. Macroeconomics discusses the balance of payment, while Microeconomics is unconcerned with this.

Comparison table between Microeconomics and Macroeconomics

Feature Microeconomics Macroeconomics
Level of function Small Large
Sector Primary Secondary and Tertiary
Inflation rate No Yes
Resources Allocation More Proper Inappropriate


In a nutshell, we can say that both micro and Macroeconomics are the primary functional parts of economics. Microeconomics deals with a short-scale economy, while macroeconomics deals large-scale Economy.

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