Microeconomics studies individual economic units (consumers, firms, industries), while Macroeconomics studies the economy as a whole. Micro: examines how prices are determined, individual demand-supply, firm behavior, market structures. Examples: demand for cars, profit of Tata Motors, wages in IT sector. Macro: analyzes national income, unemployment, inflation, fiscal policy, international trade. Examples: GDP growth, inflation rate, unemployment rate, balance of payments. Key differences: Micro uses individual choices; Macro uses aggregates. Micro studies price mechanism; Macro studies price level. Relevance: Micro helps understand markets; Macro helps understand overall economic health. ICAI distinction: Micro questions focus on specific markets/firms; Macro questions focus on national/international economy. Exam tip: If question mentions "individual consumer" or "specific market," it's micro; if it mentions "national" or "overall economy," it's macro.