Final answer:
Colonial America's prosperity stemmed from diverse economic activities, mercantilist policies such as the Navigation Acts, and the advantages of being part of the British Empire's trade network.
Step-by-step explanation:
One of the reasons Colonial America became prosperous was due to C) Diverse economic activities. The colonies were part of a mercantile system where they provided valuable raw materials such as tobacco and sugar, engaged in agriculture due to fertile lands, and participated in light manufacturing for local markets. These economic ventures were bolstered by beneficial trade policies like the Navigation Acts, which facilitated trade back to England and ensured colonial participation in the mercantilist system, leading to economic prosperity.
Over time, the colonial economies diversified, with regions specializing in different types of production, and this contributed to the colonies' collective economic success. With the aid of laws such as the Navigation Acts and incentives like protection from piracy, colonies experienced a standard of living increase, creating a beneficial economic environment for both the colonies and the British Empire.