Final answer:
It is false that British colonial policy encouraged local manufacturing due to the growing colonial population; instead, the colonists heavily relied on imported goods supplied by Britain.
Step-by-step explanation:
It is false that the growing colonial population created a market for locally produced goods that British colonial policy discouraged. In fact, during the eighteenth century in North America, most colonists were not self-sufficient and relied on imports of consumer goods from Britain. While the colonists did engage in some manufacturing for local markets, these activities were limited and did not compete directly with major industries in England. Despite the self-sufficient farmer's image, colonists imported basic necessities and luxuries to meet their needs, as they never fully achieved the means to take care of all of their own requirements. Factors such as British mercantilist policy, which restricted local manufacturing in the colonies to increase British profits, played a significant role in shaping the colonial economy. Moreover, population increases and demand for consumer goods fueled a market for imported goods, rather than supporting widespread local manufacturing.