Final answer:
Colonists were prohibited from producing manufactured goods under the economic policy of mercantilism, enforced by the British through acts like the Woolens Act of 1699 and the Hat Act of 1732.
Step-by-step explanation:
Under mercantilism, the economic policy where colonies were prohibited from producing manufactured goods, the British government wanted to ensure that colonies like those in North America served primarily as a source of raw materials and as markets for finished products made in Britain. The intention behind this policy was to keep the colonies economically dependent and beneficial to the mother country's wealth. The Navigation Acts were a series of laws that enforced mercantilist policy by limiting the trade the colonists could engage in and preventing them from manufacturing goods that were produced in England. Acts such as the Woolens Act of 1699 and the Hat Act of 1732 are examples of restrictions placed on the colonists to prevent them from producing and exporting manufactured goods, thereby ensuring that the economic advantages favored Britain. Consequently, option 3, Mercantilism, is the correct answer to the question regarding which policy prohibited colonists from producing manufactured goods.