According to google, Mercantilism was a popular economic philosophy in the 17th and 18th centuries. In this system, the British colonies were moneymakers for the mother country. The British put restrictions on how their colonies spent their money so that they could control their economies.
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The correct answer for this question would be the first option. Based on the given excerpt above, what Paine suggests about the king's action is that, his actions make Britain poorer. The king is making the nation poorer because of his actions of making war and giving away land. Hope this answers your question.
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After the signing of an armistice with Spain, American troops raised the U.S. flag over the island, formalizing U.S. authority over its one million inhabitants. In December, the Treaty of Paris was signed, ending the Spanish-American War and officially approving the cession of Puerto Rico to the United States
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