Economics · Socio-Economic Systems
A teacher asks her students to explain the "putting-out system". Which of the following examples correctly illustrates this system?
- 1Oliver grows turmeric on his land and sells the harvest directly to a nearby cottage industry workshop.
- 2A merchant supplies Tendu leaves to villagers and receives finished bidis from them in return.✓
- 3Sujata buys raw mangoes from the market, pickles them at home, and sells them online.
- 4Roshan supplies water to a commercial bottling plant in return for cash payments.
Correct answer
A merchant supplies Tendu leaves to villagers and receives finished bidis from them in return.
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