UNT ECON 1100 EXAM 2 ACTUAL PAPER 2026 QUESTIONS AND SOLUTIONS GRADED A PLUS

UNT ECON 1100 EXAM 2 ACTUAL PAPER
2026 QUESTIONS AND SOLUTIONS
GRADED A PLUS


◉ Ceteris paribus, an effective (binding) price floor for a good leads
to:
Answer: surpluses of the good.


◉ The efficient level of an activity is at the point where:
Answer: marginal benefit is equal to marginal cost.


◉ Marginal cost is:
Answer: the cost of producing one more unit of a good or service.


◉ A buyer gains consumer surplus when the market price:
Answer: is less than the maximum price the buyer is willing to pay.


◉ All of the following are sources of inefficiency except:
a. public goods. b. the invisible hand. c. external costs. d. price
ceilings

, Answer: the invisible hand.


◉ Refer to figure 1. The marginal benefit of the 200th unit is:
Answer: $10


◉ Refer to Figure 1. Consumer surplus when price is $20 is:
Answer: $500


◉ Which of the following is the most correct statement about tax
burdens?
Answer: A tax burden falls most heavily on the side of the market
that is inelastic.


◉ An increase in the supply of lettuce, ceteris paribus, leads to a ___
in the equilibrium price of lettuce, and consumer surplus to the
lettuce buyers will ___.
Answer: decrease; increase


◉ Refer to Figure 2. Under free market conditions, producer surplus
will be:
Answer: $50