a) What is Microeconomics? Microeconomics is the branch of economics that studies the behavior of individual economic units, such as households, firms, and individual markets. It focuses on how these units make decisions regarding the allocation of scarce resources and how their interactions determine prices and quantities in specific markets. b) Difference between Microeconomics and Macroeconomics • Microeconomics examines economic decisions and behaviors at the individual level, focusing on specific markets, consumers, and firms. Examples include analyzing the price of a single product or a firm's production choices. • Macroeconomics examines the economy as a whole, focusing on aggregate phenomena such as national income, inflation, unemployment, and economic growth. Examples include studying government fiscal policy or the overall level of prices in an economy.