The correct option is (a).
Explanation
The putting-out system is a domestic system of production where a merchant supplies raw materials (such as yarn) to artisans (weavers) and receives the finished product (cloth). This arrangement defines the economic relationship between the merchant and the weaver, characterized by a specific division of risk and labor.
Statement-wise Analysis:
- Statement 1 is Correct: Under the putting-out system, the merchant purchases the yarn and distributes it to the weavers. Consequently, the weavers are relieved of the financial burden of investing their own capital to buy raw materials. This is considered a primary advantage for the weavers.
- Statement 2 is Incorrect: The weavers do not have direct access to the market. They produce cloth based on the orders received from the merchant, who then collects the finished goods and sells them to garment manufacturers or exporters. The responsibility of selling in distant markets lies with the merchant, not the weaver.
- Statement 3 is Incorrect: Weavers do not have autonomy over pricing. Since they are dependent on the merchant for both the supply of raw materials and the sale of the finished product, they have very low bargaining power. The merchant determines the payment for the work, which is often low compared to the final market price of the cloth.
Key Takeaway:
The putting-out system benefits weavers by eliminating the cost of raw materials, but it creates a dependency on merchants, depriving weavers of market access and the ability to determine the price of their labor.