Done as suggested and smart zoom is selected but I have never been able to make it operate. I have only the mac a few weeks.
No matter how lightly or firmly I tap the mouse, without clicking, there is no zoom.
There is something else I do with the mouse that causes it to zoom but I don't know what it is so cannot zoom out.
i will maybe turn the smart zoom off and see if the zoom stops altogether?
John, try it with the smart zoom on and off and see how it behaves. The questions about the magic mouse are more commonly concerned with it being TOO sensitive and how can it be detuned. If you cannot get it to operate it could be a faulty mouse. Since this is a new iMac, while it is not a convenient thing to do, you might want to take the iMac and mouse to the Apple store genius bar and have the techs see why it isn't working right. If the mouse is bad they will replace it.
If you do that, be sure to call or email and request an appointment so you don't have to stand around and wait.