The energy an object possesses due to its form and position is know as

I believe the energy being described is the potential energy. Potential energy is the stored energy, it is the energy an object has because of its position or shape. It is also the energy possessed by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors. The major types of energy include the gravitational energy of an object that depends on its mass and its distance from the center of mass. 

Iwould have to say sorry i can't elaborate more. hope this though!

Since the pully is a simple machine so the mechanical advantage is a 1