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

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

Answer: (C)

Verified step by step guidance

1. Understand the distinction between different branches of economics: International economics focuses on trade and finance between countries; Macroeconomics studies the economy as a whole, including inflation, unemployment, and growth; Development economics looks at improving economic conditions in poorer countries.
2. Recognize that Microeconomics studies individual and firm behavior, including decision-making processes and how incentives affect choices.
3. Identify that issues like reducing teenage smoking involve analyzing individual behavior and responses to policies or incentives, which falls under Microeconomics.
4. Conclude that since the problem involves studying ways to influence individual behavior (teenage smoking), the relevant branch is Microeconomics.
5. Therefore, the correct answer is Microeconomics because it deals with individual choices and policy impacts at the micro-level.