Final answer:
The early economy of the United States was primarily based on agriculture, within the framework of the Mercantilist system imposed by England, which regulated trade and taxed colonists to ensure a favorable balance of trade.
Step-by-step explanation:
The early economy of the United States was marked by colonists who operated a society based primarily on agriculture. During the colonial era, the colonial economies operated under Mercantilism, where colonies like those in British North America existed to increase the wealth of the mother country by supplying raw materials. Under this system, colonies were tasked with producing raw materials like tobacco and cotton, which were then shipped back to England to be manufactured into goods and sold back to the colonies, often at a higher price.
Colonies were supposed to trade only with their mother country and were prohibited from trading with other European countries, which facilitated a favorable balance of trade for England. This practice was enforced by laws such as the Navigation Acts. During this time, trade and taxation were critical aspects as they directly influenced the economic activities within the colonies and helped sustain this Mercantilist system.
Over time, the American economy diversified, engaging in some local manufacturing without directly competing with the more developed industries in England. However, agriculture remained the primary economic activity for much of the colonial period, propelled by the availability of fertile land and the profitability under the existing mercantilist policies.