About the authors -- List of tables -- table 2.1 Labour's productivity in England and Canada -- table 2.2 Changes in world output -- table 2.3 Percent in agreement with the proposition: 'minimum wages increase unemployment among young and unskilled workers' -- table 3.1 Types of market structure -- table 3.2 Tax incidence applications used in ten major North American textbooks -- table 4.1 Mary's benefit from eating pizzas -- table 5.1 Inputs and output in the short run (using 10 units of capital) -- table 5.2 Costs in the short run -- table 5.3 Downward-sloping demand and marginal revenue -- table 6.1 A pay-off matrix illustrating the prisoner's dilemma -- table 6.2 Repeated plays when Esso plays 'tit-for-tat' -- table 7.1 Classification of types of goods -- table 7.2 Percentage changes in age-standardized cancer incidence rates -- table 9.1 Taxation as a percentage of GDP, OECD countries, 2005 -- table 9.2 Measures of income inequality -- table 9.3 Distribution of household net worth -- table 9.4 Percentage of children in households with less than half of median household income, circa 2000 -- table 10.1 International trade, 2007 -- table 10.2 Estimates of the stock of foreign direct investment, by sector, 2006 -- table 11.1 Conventional economics and the blank cells of Akerlof and Shiller -- table 11.2 Conventional textbook economics and the blank cells of Robert Prasch -- List of figures -- figure 1.1 Marginal thinking -- figure 2.1 Wheat and cloth production in England and Canada -- figure 2.2 Expanded consumption possibilities -- figure 2.3 Different perceptions of reality -- figure 3.1 Inelastic and elastic demand -- figure 3.2 Movement towards equilibrium -- figure 3.3 Comparative static analysis -- figure 3.4 The effect of rent control -- figure 3.5 The effect of a minimum wage -- figure 3.6 The incidence of taxation.

figure 3.7 Multiple equilibria in the labour market -- figure 3.8 Self-fulfilling prophecies -- figure 4.1 Marginal benefit and price -- figure 4.2 Market demand -- figure 4.3 Happiness in the United States, 1994-96, by income decile -- figure 4.4 Happiness and per capita income across countries, 1999-2004 -- figure 4.5 Happiness in the United States, 1946-2008 -- figure 5.1 The law of diminishing marginal returns -- figure 5.2 Marginal and averagec osts -- figure 5.3 Marginal product and marginal cost -- figure 5.4 Marginal benefit and market price -- figure 5.5 Long-run average cost relationships -- figure 5.6 The long-run equilibrium for the competitive firm -- figure 5.7 Relationship between demand and marginal revenue -- figure 5.8 Short-run marginal costs -- figure 5.9 Long-run average cost with increasing and then constant returns to scale -- figure 5.10 Why the competitive firm should raise its price above the market price -- figure 6.1 Derivation of the competitive firm's supply curve -- figure 6.2 The short-run response to an increase in demand -- figure 6.3 The long-run response to an increase in demand -- figure 6.4 The optimal quantity -- figure 6.5 Non-competitive firms don't have a supply curve -- figure 6.6 Monopoly versus perfect competition -- figure 6.7 Price ceilings and monopoly -- figure 6.8 Natural monopoly -- figure 6.9 Monopolistic competition -- figure 6.10 Estimating the deadweight loss -- figure 6.11 Aggregate stock price bubbles -- figure 7.1 Markets are inefficient in the presence of externalities -- figure 7.2 Cancer incidence per 100,000 males, age-standardized rates -- figure 7.3 Cancer incidence per 100,000 females, age-standardized rates -- figure 8.1 Competitive determination of the wage of welders -- figure 8.2 Two types of unions in otherwise competitive markets -- figure 8.3 Monopsony in the labour market.

figure 8.4 Monopsony with minimum wage -- figure 8.5 The adding-up problem -- figure 8.6 Reswitching produces the possibility of multiple equilibria -- figure 8.7 Derivation of a competitive firm's upward-sloping supply of labour schedule -- figure 8.8 Average executive pay relative to average wages in the USA -- figure 8.9 Dow Jones Industrial Average and CEO pay relative to average pay, 1970-2002 -- figure 9.1 The Lorenz curve -- figure 9.2 The equity-efficiency trade-off -- figure 9.3 Income distribution and equality -- figure 9.4 The equity-growth trade-off -- figure 9.5 Relative risk of CHD death excluding other risk factors -- figure 9.6 The social gradient of health -- figure 10.1 The effects of a tariff -- figure 10.2 Average costs of producing nails in two countries -- Acknowledgements -- Introduction: our goals, audience and principal themes -- In brief -- The structure -- Our thesis -- The world-view of mainstream textbooks -- What's wrong with this world-view? -- The textbooks and the Anti-Textbook -- Suggestions for further reading -- 1

2.6 Reconsidering the assumption of rationality -- 2.7 Behavioural economics -- 2.8 Concluding comment -- Suggestions for further reading -- 2

2.3 Is the competitive model a useful approximation? -- table 3.2 Tax incidence applications used in ten major North American textbooks -- 2.4 But don't price floors cause surpluses and price ceilings shortages? -- 2.5 What the texts don't tell you about the competitive model -- figure 3.7 Multiple equilibria in the labour market -- figure 3.8 Self-fulfilling prophecies -- 2.6 Summing up -- Suggestions for further reading -- Addendum: the indeterminate and unstable economy -- 4

figure 5.10 Why the competitive firm should raise its price abovethe market price.