| Basis of Difference | Microeconomics | Macroeconomics |
| 1. Definition | It is a branch of economics that studies economic variables at an individual level like a household, firm and consumer. | It is a branch of economics that studies economic variables of an economy as a whole. |
| 2. Deals with | It deals with how consumers or producers make decisions depending on the budget given to them and other variables. | It deals with how different economic sectors (household, industrial, government and foreign) make their decisions. |
| 3. Approach used | It is based on partial equilibrium approach (i.e., equilibrium in one market) | It is based on general equilibrium approach (i.e., equilibrium in all markets simultaneously) |
| 4. Variables involved | The major variables involved are price, consumer’s demand, wages, rent, profit and firm’s revenue and cost. | The major variables involved are aggregate demand, aggregate supply, inflation, unemployment and poverty. |
