CTET PAPER II 2019 · PYQ · Economic History / Markets · medium
Which of the following forms the trading arrangement between a weaver and a merchant under the "Putting out" system? Choose the correct option.
A.Yarn is bought for the lowest bid from merchant; and cloth is sold at highest bid.
B.Yarn is sold to the weaver by the merchant; and weaver makes cloth for self-consumption.
C.Yarn is supplied by the merchant to the weaver and cloth produced is bought back from weaver at a low price.✓ Correct
D.Yarn is bought by weaver from the open market and cloth is sold to merchant at a low price.
Explanation
Under the 'Putting out' system, merchants supplied raw materials (yarn) to weavers who worked at home and produced finished cloth. The merchant then bought back the cloth from the weavers at a predetermined (usually low) price. This system kept weavers dependent on merchants and prevented them from accessing the open market directly. It was a form of exploitation of the weavers. Hence option (3) correctly describes the system.
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