Which of the following best explains how Vatican City's status as a small country impacts its economic, political, and social characteristics?

• A. Being small leads to high population density, widespread industrialization, and frequent political instability.
• B. Its small size allows for extensive natural resource exports and a highly decentralized government.
• C. Its limited size restricts economic diversification, concentrates political power, and fosters a close-knit social community.
• D. Its small population results in a large labor force and significant influence in global trade negotiations.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of how the size of a country can influence its economic, political, and social characteristics. Smaller countries often face unique constraints and advantages compared to larger countries.
2. Step 2: Analyze the economic impact of Vatican City's small size. Consider how limited land and population restrict the variety of industries and economic activities, leading to less economic diversification.
3. Step 3: Examine the political implications. A small country like Vatican City typically has a concentrated political structure, often centralized in a single authority or a small governing body, rather than a decentralized government.
4. Step 4: Reflect on the social characteristics. A small population tends to foster a close-knit community where social relationships are more personal and interconnected.
5. Step 5: Compare these insights with the given options to identify which explanation aligns best with the typical effects of a very small country like Vatican City.