Q1.Indian HistoryAsked in: CTET · July 2019, Paper 2 Social StudiesMedium
Which of the following forms the trading arrangement between a weaver and a merchant under the 'Putting out' system?
- 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.
- D.Yarn is bought by weaver from the open market and cloth is sold to merchant at a low price.
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Correct answer: C. Yarn is supplied by the merchant to the weaver and cloth produced is bought back from weaver at a low price.
Under the putting out system the merchant handed the raw material to the weaver and took back the finished cloth at a price he himself fixed, which was low.
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