It should be running at 5000 / 5500 RPM at full throttle.-----Post actual compression values.----Does spark jump a gap of 3/8" on each lead ?-----Stop running the motor as it is now.-----A plugged carburetor can result in serious piston / cylinder damage.
Seller likely demonstrated motor a number of times without water to the impeller.----That is done all the time !----The white piece likely has something to do with speedometer hose.
These carburetors are often set too lean.-----They idle smooth on a hose.-----That is NOT the correct setting when motor is in the water and needs to produce more power to spin the prop.-----Open the mixture screws 1/8th at a time and test.-----Repeat as needed.-----Often the bogging goes...
For many years and power ranges , Mercury used a 10X number.----The inline 6 cylinder 150 HP was designated as a 1500.----V-6 175 was a 1750 Etc, Etc.----Cut a bit off the inlet water tube to suit.