This task is about reading the given passage and construct a question about the information present in the passage. Construct a question in such a way that (i) it is unambiguous, (ii) it is answerable from the passage, (iii) its answer is unique (iv) its answer is a continuous text span from the paragraph. Avoid creating questions that (i) can be answered correctly without actually understanding the paragraph and (ii) uses same words or phrases given in the passage.

Example input: Passage: The French and Indian War (1754–1763) was the North American theater of the worldwide Seven Years' War. The war was fought between the colonies of British America and New France, with both sides supported by military units from their parent countries of Great Britain and France, as well as Native American allies. At the start of the war, the French North American colonies had a population of roughly 60,000 European settlers, compared with 2 million in the British North American colonies. The outnumbered French particularly depended on the Indians. Long in conflict, the metropole nations declared war on each other in 1756, escalating the war from a regional affair into an intercontinental conflict.
Example output: When was the French and Indian War?
Example explanation: This question is based on the following sentence in the passage- The French and Indian War (1754–1763) was the North American theater of the worldwide Seven Years' War. It is a common convention to write (start year-end year) beside a historical event to understand when the event happened. You can ask questions like this one about dates, years, other numerals, persons, locations, noun phrases, verb phrases, adjectives, clauses etc. which exist in the paragraph.
Q: The First British Empire was based on mercantilism, and involved colonies and holdings primarily in North America, the Caribbean, and India. Its growth was reversed by the loss of the American colonies in 1776. Britain made compensating gains in India, Australia, and in constructing an informal economic empire through control of trade and finance in Latin America after the independence of Spanish and Portuguese colonies about 1820. By the 1840s, Britain had adopted a highly successful policy of free trade that gave it dominance in the trade of much of the world. After losing its first Empire to the Americans, Britain then turned its attention towards Asia, Africa, and the Pacific. Following the defeat of Napoleonic France in 1815, Britain enjoyed a century of almost unchallenged dominance and expanded its imperial holdings around the globe. Increasing degrees of internal autonomy were granted to its white settler colonies in the 20th century.
A:
What was the first British empire based on?