I would say the engine is the 4 cylinder model 650 last marketed in 1971 rated at 65 HP.
I think it's a hybrid that has had various parts replaced on it with newer parts. It has a new stator and newer flywheel on it with Thunderbolt CDI ignition. I thought those older Mercs had a distributor, but maybe the 650 never did, not sure. The lower unit, I'm pretty sure, came off an inline-six Tower of Power. It has the plunger in the end of the driveshaft, I didn't think the older ones had that.
Regardless, these are some of the best engines Mercury ever built IMO. The only reason they went to the inline-three back in the day was because OMC was selling one, and it was a popular seller. So Mercury decided to match that with their own inline-three. Same thing with the Tower of Power sixes. OMC had the V-6 so Mercury built the inlines and V-6's side by side for a few years before finally discontinuing the inlines. But those Tower of Power inline-sixes were never surpassed by modern technology either. 20 years after they were built there was still thousands of 'em on ski boats used by ski teams because they had incredible torque and would pull a dozen skiers out of the water and not even breathe hard.
The newer stuff got newer, but not necessarily better.