Which of the following areas of economics studies issues such as ways to reduce teenage smoking?

• A. Macroeconomics
• B. Development economics
• C. Microeconomics
• D. International economics

Answer: (C)

Verified step by step guidance

1. Understand the distinction between the main branches of economics: Macroeconomics studies the economy as a whole, including aggregate indicators like GDP and unemployment; Development economics focuses on improving economic conditions in developing countries; International economics deals with trade and finance between countries; Microeconomics studies individual and firm behavior and decision-making.
2. Identify the nature of the issue: Reducing teenage smoking involves analyzing individual choices, incentives, and behaviors, which falls under the study of individual agents rather than aggregate economic variables.
3. Recognize that Microeconomics examines how individuals respond to policies, prices, and incentives, which is essential for designing effective interventions to reduce behaviors like teenage smoking.
4. Conclude that since the problem involves individual behavior and policy impact at a micro-level, the relevant branch of economics is Microeconomics.
5. Therefore, the correct answer is Microeconomics because it focuses on individual decision-making and behavior, which is key to addressing issues like teenage smoking.