Randall Newman distributes rawhide to several different homes. In turn, each household produces a product such as satchels, belts, shoes, and boots, and then Randall sells the finished goods. This represents a(n)
A) oligopoly.
B) domestic system.
C) system of specialization.
D) factory system.
E) barter system.

Question

Quizplus · Accepted Answer

This scenario represents the domestic system, also known as the putting-out system, where a merchant (Randall Newman) distributes raw materials to different households who then produce the finished goods. This system was prevalent in pre-industrial times before the rise of factories and mass production.

Randall Newman Distributes Rawhide to Several Different Homes