When looking at microeconomics, the focus is on individuals and businesses. In other words, the focus is entirely on entities operating within the confines of a given jurisdiction like a country. Microeconomics also seeks to explain or understand the supply and demand in an economy. It also focuses on other factors that influence the prices of goods or services in an economy. When making decisions, investors use microeconomics to make financial decisions for their businesses.

Contrastingly, the main focus, in macroeconomics, is on bigger bodies such as a whole nation or a government. Macroeconomics in many cases is seen as a tool that can help to determine the financial policies to be used in a nation since it views the economy from a wholistic point. This is the opposite of microeconomics, which views the economy from an entity's perspective.