A microprocessor serves as the core processing unit responsible for logic operations and machine code interpretation, while a microcontroller includes a microprocessor along with additional on-board peripherals like A/D converters and interface units. The distinction between microprocessors and microcontrollers can be blurred, as some microprocessors may include features typically found in microcontrollers. Common programming languages for microcontrollers are C and assembly language. Understanding these differences is crucial for selecting the right component for specific applications.