| Basis for Differentiation |
Microeconomics |
Macroeconomics |
| Meaning |
Microeconomics studies the particular market segment of the economy. |
Macroeconomics studies the whole economy, that covers several market segments. |
| Deals |
Microeconomics deals with various issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, etc., |
Macroeconomics deals with various issues like national income, distribution, employment, general price level, money, etc., |
| Business Application |
Applied to internal issues |
Environment and external issues |
| Scope |
Covers several issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, etc. |
Covers several issues like distribution, national income, employment, money, general price level, etc., |
| Significance |
Useful in regulating the prices of a product alongside the prices of factors of production (labour, land, entrepreneur, capital, etc) within the economy. |
Perpetuates firmness in the broad price level and solves the major issues of the economy like deflation, inflation, rising prices (reflation), unemployment and poverty as a whole. |
