Microeconomics and macroeconomics are terms, which are frequently confused. The similarity in their phonetics often tricked people to believe they are one of the same phenomenon. Simply explained the microeconomics refers to the individual and the macroeconomics to the whole economic picture.
Microeconomics is the study of a particular market, and segments of the economy. It is concerned with issues like consumer behavior, individual labor markets, and the theory of firms.
Macroeconomics on the other hand is the study of the whole economy. It looks at aggregate variables, such as aggregate demand, national output and inflation.
For example, the macroeconomics would look at how a specific company could maximize its production and capacity, so it could lower prices and better compete in its industry.
The microeconomics will be occupied with how the GDP would be affected by unemployment rates.
Now it’s your turn to think of some more examples of micro and macroeconomics!