What does the term social capital refer to?

The term social capital refers to the networks of relationships among people that enable society to function effectively. This concept emphasizes the importance of social networks, trust, and norms within communities that facilitate cooperation for mutual benefit. Social capital is crucial for fostering community engagement, enhancing social cohesion, and promoting collective action. It contributes to social integration and can significantly influence various aspects of daily life, including economic outcomes, educational achievements, and health disparities.

On the other hand, the other options pertain to different types of resources or measures. The financial resources available for societal development relate to economic capital, while the knowledge and skills possessed by individuals are often referred to as human capital. A measure of economic productivity in a community focuses on economic indicators rather than social connections. Each of these concepts is important in its own right but does not capture the essence of social capital as the correct answer does.