Wine negociants buy juice in bulk, blend, bottle and sell it. 2 buck, a negociant wine, is drinkable in all it's varieties, some better than others - even better for cooking. But mistaking it for quality wine in a blind tasting sounds a bit far fetched.
Still, there have been increasing surpluses of good quality juice due to over-planting and good vineyard management so there are indeed many very reasonably priced quality wines on the market. Some wine negociants like Cameron Hughes buy quality juice and sell their blends at very reasonable prices. US West Coasters may have seen his wines at costco. Other wine negociants operate virtual wineries of cult status and their wines sell for hundreds a bottle.
Many prestige wineries worldwide have "second" labels under which they bottle their surplus juice and these wines can be great values. Opus One has Overture. Hawk Crest is the second label for Stag's Leap. Sometimes the second label juice doesn't quite meet the wineries top standard. Other times it may be the identical blend used in the first label bottle.
Google something like "second label wines" to track down quality second label wines. Then pick up some 2 buck. Gather some wine loving friends together and set up a blind tasting. You'll be surprised how often people agree on what is "best". I'd guess 2 buck won't come out on top.