In Microsoft Word, first line and hanging are special forms of paragraph indentation used to control how text begins on each line.

Introduction / Context:
Word processors such as Microsoft Word provide many formatting options that improve the readability and professional appearance of documents. One important feature is indentation, which controls how far lines of text are set in from the margins. Two commonly used special indentation styles are first line indentation and hanging indentation. These are especially useful in reports, books and reference lists. This question checks whether you know that these named styles are forms of indentation rather than alignment, spacing or other formatting categories.

Given Data / Assumptions:

• The application being discussed is Microsoft Word or a similar word processor.
• The terms mentioned are first line and hanging.
• Both terms are described as special forms of something related to paragraph layout.
• The options include alignment, spacing, effects, indentation and justification.
• Only one of these correctly identifies the category for first line and hanging.

Concept / Approach:
Indentation refers to the position of the text relative to the left and right margins. A first line indent moves only the first line of a paragraph in from the margin, leaving the rest of the paragraph aligned with the margin. A hanging indent does the opposite: the first line remains aligned with the margin, while subsequent lines are indented inward. These styles are used, for example, in bibliographies and bullet lists. Alignment and justification refer to how text lines up horizontally (left, right, centred or fully justified). Spacing refers to gaps between lines or paragraphs. Effects may include text decoration such as shadows or borders. Therefore, first line and hanging are clearly special forms of indentation.

Step-by-Step Solution:
Step 1: Identify that the terms first line and hanging are specific names used in the paragraph formatting dialog of Word.Step 2: Recall that these options appear under the indentation section, not under alignment or spacing.Step 3: Understand that a first line indent moves only the first line inward, while a hanging indent moves the remaining lines inward.Step 4: Compare this behaviour with alignment, which controls whether text is left aligned, right aligned, centred or justified.Step 5: Note that spacing controls vertical distance between lines and paragraphs, not horizontal start positions.Step 6: Conclude that first line and hanging are types of indentation and choose indentation as the correct answer.

Verification / Alternative check:
You can verify this by opening the Paragraph dialog in Microsoft Word and looking at the Indentation section. There you will see a dropdown labelled Special with options such as None, First line and Hanging. Adjusting these settings changes how text is indented. Alignment settings are found in a separate part of the toolbar or dialog and include Left, Center, Right and Justify. Spacing options control the distance before and after paragraphs and the line spacing. This visual layout in the software confirms that first line and hanging belong to the category of indentation, not to alignment or spacing.

Why Other Options Are Wrong:

• Alignment determines whether text is aligned to the left, right, centre or evenly spaced, but it does not create first line or hanging layouts by itself.
• Spacing refers to vertical distance between lines or paragraphs and does not affect how far lines start from the margin.
• Effects may include style features such as underlines, borders or shading, which are unrelated to indenting lines.
• Justification is a specific type of alignment that spreads text evenly between margins, not a type of indentation.

Common Pitfalls:
Some learners confuse indentation with alignment because both affect the appearance of text relative to margins. Another common mistake is to think that any change in paragraph layout must be related to spacing. Remember that indentation deals with horizontal starting positions of lines, alignment deals with how text is lined up overall, and spacing deals with vertical gaps. Recognising that terms like first line and hanging appear inside the indentation section of Word will help you quickly answer similar questions correctly.

Final Answer:
The correct answer is Indentation, since first line and hanging are special forms of paragraph indentation in Microsoft Word.