Final answer:
The correct answer is Option C: The Union had a diverse, industrialized economy, while the Confederacy relied heavily on agriculture. The advantage of the Union was its economic diversity, and the Confederacy had a skilled workforce.
Step-by-step explanation:
When comparing the economies of the Union states and the Confederate states during the Civil War, the Union had a diverse, industrialized economy, while the Confederacy relied heavily on agriculture, primarily cotton exports. The Union's advantages included a larger population, bolstered by European immigration, greater industrial capabilities, an extensive railroad grid, and the ability to produce more war materials and move goods quickly. In contrast, the Confederacy fought a defensive war, with skilled military leaders from West Point and a population experienced with firearms and horsemanship.
However, the South faced major disadvantages such as a smaller population, a lack of substantial industry, a challenging naval blockade which stifled international trade, rampant inflation, food shortages, and a less efficient railroad system.