Question

Is it realistic to assume that the economy characterized by a system of markets, left to its own and completely unregulated, can effectively take the place of laws and other social institutions in generating socially acceptable outcomes?

Answer 1

if free market and completely unregulated markets could be effective enough on its own without any government intervention and institutions to produce the socially acceptable outcomes then there would never have been a situation like great depression arrised. it was the classical economists like adam smith, j.s mill, j.b say etc who believed that a free market is efficient enough to correct itself only untill the great depression, but the great depression is a big proof that government intervention and law and regulations are much needed in the economy to some extent to function smoothly. so we can conclude that a completely unregulted and free market is not efficient enough to generate socially acceptable outcomes every time.it works well but not every time so government intervention is also needed.