Social Science · Civics
The 'putting-out system' refers to an arrangement wherein:
- 1The government procures cloth directly from the weavers' cooperatives.
- 2The merchant supplies the raw material to the weavers or producers and receives the finished product from them.✓
- 3Weavers spend their money on the purchase of yarn and sell the finished cloth in the market.
- 4Weavers or any producers form a group and take up certain activities collectively.
Correct answer
The merchant supplies the raw material to the weavers or producers and receives the finished product from them.
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