UNT ECON 1100 EXAM 2 QUESTION
BANK 2026 FULL REVIEW GRADED
A+
◉ Costs that must be paid in the short run even when no output is
produced are called
Answer: total fixed costs.
◉ When output sells for a price that is higher than its marginal cost to
the seller (the minimum price the seller is willing to accept), the seller:
Answer: enjoys a producer surplus.
◉ In a perfectly competitive market, an individual firm sells output:
Answer: at the price determined by the market forces of supply and
demand.
◉ Which of the following statements best illustrates the existence of
consumer surplus?
Answer: Stan saved $50 to buy a cowboy hat he had been wanting.
When he got to the store, the hat was on sale and he bought the hat for
only $39 instead of $50.
◉ A demand curve can be interpreted as:
Answer: a marginal benefit curve.
, ◉ Consumer surplus is the difference between ________ and product
price and producer surplus is the difference between ________ and
product price.
Answer: marginal benefit; marginal cost
◉ Ceteris paribus, when supply shifts to the left, there is:
Answer: an increase in price and a decrease in consumer surplus.
◉ Based on the information in the graph below, in free market
equilibrium, total consumer and producer surplus is equal to _______.
Answer: $400
◉ An efficient level of an output exists when:
Answer: marginal benefit is equal to marginal cost.
◉ After a price floor is established above the equilibrium price in the
market for strawberries:
Answer: the quantity of strawberries actually bought and sold decreases.
◉ The purpose of setting a price ceiling below the equilibrium price is
to:
Answer: maintain a low price for buyers in the market.
BANK 2026 FULL REVIEW GRADED
A+
◉ Costs that must be paid in the short run even when no output is
produced are called
Answer: total fixed costs.
◉ When output sells for a price that is higher than its marginal cost to
the seller (the minimum price the seller is willing to accept), the seller:
Answer: enjoys a producer surplus.
◉ In a perfectly competitive market, an individual firm sells output:
Answer: at the price determined by the market forces of supply and
demand.
◉ Which of the following statements best illustrates the existence of
consumer surplus?
Answer: Stan saved $50 to buy a cowboy hat he had been wanting.
When he got to the store, the hat was on sale and he bought the hat for
only $39 instead of $50.
◉ A demand curve can be interpreted as:
Answer: a marginal benefit curve.
, ◉ Consumer surplus is the difference between ________ and product
price and producer surplus is the difference between ________ and
product price.
Answer: marginal benefit; marginal cost
◉ Ceteris paribus, when supply shifts to the left, there is:
Answer: an increase in price and a decrease in consumer surplus.
◉ Based on the information in the graph below, in free market
equilibrium, total consumer and producer surplus is equal to _______.
Answer: $400
◉ An efficient level of an output exists when:
Answer: marginal benefit is equal to marginal cost.
◉ After a price floor is established above the equilibrium price in the
market for strawberries:
Answer: the quantity of strawberries actually bought and sold decreases.
◉ The purpose of setting a price ceiling below the equilibrium price is
to:
Answer: maintain a low price for buyers in the market.
