I have a 7ft medium micro magic casting rod and an abu garcia black max reel. What line should I use to maximize the use of light weighted lures?

It depends on what lure you use, how big the bass are and the amount of cover you are fishing. I use cheap 12lb mono backing and tie on 70 yards of 12lb fluorocarbon. That's me. If I had one rod I would use 12lb fluorocarbon.

What are you calling light weight lures? I would recommend either Seaguar Inviz-X 10-12lbs fluorocarbon or Yo-Zuri Hybrid 10-12lbs copolymer line.

Yo Zuri 10# would work great on that reel. It's thin, and it's actually rated much higher than 10# IIRC.

I wouldn't recommend using backing with a MicroMagic rod. The connecting knot from filler to main line won't pass through the eye. It's the same problem with leaders at the other end.

As far as the strength of line to use stay at around 10# or 12# and you'll be OK.

Yo-zuri hybrid, or Izorline are great choices.