Includes bibliographical references and index.

What poverty is -- Behavioral factors in poverty -- Some theories -- A closer look at the inefficiency argument -- Appendix. Using indifference curves to identify utility-maximizing allocations -- A new way to rationalize the conduct that prolongs and worsens poverty -- Appendix. Further exploration through graphical analysis -- Responses to challenges and questions -- Appendix. The case of Alfred Marshall -- Policy: what should we do differently if we believe that marginal utility is increasing amid scarcity? -- Economic justice reconsidered.