Question

How does social capital contribute to economic development?

• A. By reducing interpersonal trust and collaboration
• B. By creating a conducive environment for businesses through trust and cooperation
• C. By focusing exclusively on financial markets
• D. By increasing bureaucratic procedures

Answer 1

Answer:

B. By creating a conducive environment for businesses through trust and cooperation

Social capital fosters trust and cooperation among individuals and institutions, which reduces transaction costs and creates a supportive environment for business activities, investments, and economic growth.