Concept:The "putting out" system was a domestic manufacturing arrangement where a merchant provided raw materials to a weaver, who then returned the finished cloth. The weaver had no capital and was dependent on the merchant.
Explanation:In this system, the merchant supplies yarn to the weaver at no upfront cost.
The weaver uses this yarn to produce cloth and gives it back to the merchant.
The merchant buys the finished cloth from the weaver at a very low price.
This arrangement makes the weaver completely reliant on the merchant for both materials and sale of the product.
The merchant can sell the cloth anywhere at any profit, while the weaver earns very little.
Option A describes bidding, which is not part of this system.
Option B talks about self-consumption, which is not relevant.
Option D says the weaver buys yarn from the market, which contradicts the core idea of the putting out system.
Thus, only option C correctly describes the arrangement.
Answer:Option C: Yarn is supplied by the merchant to the weaver and cloth produced is bought back from weaver at a low price.