The correct answer is A. The South lacked capital and educated labour force. The Southern economy did not develop like the North because the South was strongly Angelican while the north was Puritain which led to differences in work ethic and education. Puritainism values a literate population because everyone should be able to read the Bible, while in the south, books did not matter and education was considered to be for the wealthy. Economy in the South was based around human labor and slavery. The North used more ingenuity and intellect which led to blossoming of the industry and trade.
