Question map
In the context of any country, which one of the following would be considered as part of its social capital?
Explanation
The correct answer is option D because families are primary building blocks for social capital, creating norms and social ties, and providing a social network that benefits its members[1]. More broadly, civic engagement, honesty and social trust can reinforce each other[2], indicating that mutual trust and harmony are key components of social capital.
The other options represent different forms of capital: Option A (literacy proportion) relates to human capital, as the role of government in sustaining social capital is less clear than in the context of human capital[3], suggesting these are distinct concepts. Option B (buildings, infrastructure, and machines) represents physical capital. Option C (working-age population) is demographic capital or human resources. Social capital specifically refers to the networks, norms, trust, and social relationships that facilitate cooperation and coordination within society, making option D the only correct choice.
Sources- [1] https://www.oecd.org/content/dam/oecd/en/publications/reports/2001/05/the-well-being-of-nations_g1gh268d/9789264189515-en.pdf
- [2] https://www.oecd.org/content/dam/oecd/en/publications/reports/2001/05/the-well-being-of-nations_g1gh268d/9789264189515-en.pdf
- [3] https://www.oecd.org/content/dam/oecd/en/publications/reports/2001/05/the-well-being-of-nations_g1gh268d/9789264189515-en.pdf
PROVENANCE & STUDY PATTERN
Full viewThis is a classic 'Definition by Elimination' question. While 'Social Capital' is a sociological term, options A, B, and C are standard NCERT definitions for Human Capital, Physical Capital, and Demographic Dividend respectively. If you know what the others are, the answer reveals itself.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: In the context of a country, is the proportion of literates in the population considered part of its social capital?
- Statement 2: In the context of a country, is the stock of buildings, other infrastructure and machines considered part of its social capital?
- Statement 3: In the context of a country, is the size of the population in the working-age group considered part of its social capital?
- Statement 4: In the context of a country, is the level of mutual trust and harmony in society considered part of its social capital?
- Explicitly distinguishes social capital from human capital, implying they are separate categories.
- If literacy is treated as an outcome of education/human capital, this passage supports that literacy is not automatically part of social capital.
- Notes the historical link between social capital and education, indicating some conceptual overlap.
- Shows that social capital has been discussed in the context of education and local communities.
- Identifies families and schools as primary building blocks for social capital, linking institutions related to education to social capital formation.
- Suggests that elements connected to education (schools) contribute to social capital, indicating some aspects of education relate to social capital.
States that the 'quality of population' depends on literacy and that a literate population is an asset β framing literacy as a population attribute linked to broader societal quality.
A student could combine this with a standard distinction between 'human capital' (skills, education) and 'social capital' (networks, norms) to judge whether literacy more naturally fits human or social capital.
Defines population as a 'human resource' and describes education/skill formation as 'human capital formation', directly associating literacy/education with human capital.
Using this, a student can infer literacy is commonly treated as human capital and thus weigh against classifying it as social capital without additional social-network evidence.
Explicitly calls literacy an important characteristic that enhances skills and productivity of 'human capital'.
A student could use this pattern to argue literacy is primarily an input to individual productive capacity (human capital) and only secondarily related to social capital unless linked to social networks/trust.
Notes literacy provides opportunities for employment and is determined by socio-cultural factors, linking literacy to social conditions and interactions.
A student might extend this to hypothesize that because literacy affects social interaction and status, it could influence social capital (networks/trust), so proportion literate may indirectly affect social capital measures.
Says population composition by residence is an important indicator of social and economic characteristics, illustrating how demographic attributes serve as social indicators.
A student could analogously treat literacy proportion as a demographic indicator that signals social characteristics (and thereby may correlate with social capital), prompting empirical comparison across regions.
- Defines social capital in terms of intangible social attributes: civic engagement, honesty and social trust.
- Emphasises social capital as networks/relationships and norms rather than material assets.
- Presents 'physical capital' as a distinct category alongside education and variables for social/institutional factors.
- By listing 'physical capital' separately, it implies buildings, infrastructure and machines belong to physical capital, not social capital.
- Identifies families, norms and social ties as the 'primary building blocks' of social capital.
- Emphasises social capital as social networks and reciprocity, reinforcing that it is about relationships rather than physical stock.
Defines tools, machines, buildings as 'fixed capital' and contrasts them with working capital and a separate 'knowledge/enterprise' requirement.
A student could use this rule to treat buildings and machines as physical (fixed) capital and ask whether 'social capital' is usually defined to include physical assets or something else (e.g., social relations or institutions).
Gives a broad economic definition of 'capital' that explicitly lists machinery, tools, shops, factories and office buildings as capital used to produce goods and services.
One could extend this by comparing standard lists of 'capital' with common definitions of 'social capital' (if social capital refers to networks/trust, then buildings would differ).
Defines investment as addition to the stock of physical capital (machines, buildings, roads) β framing these items as 'physical capital' that expand productive capacity.
A student could use the 'physical capital' label to argue these items belong to physical/economic capital categories rather than to social capital, which may be about social resources.
Distinguishes 'social infrastructure' (schools, hospitals, parks) from 'economic/hard infrastructure' (energy, transport) and links social infrastructure to human development.
One could extend this by asking whether 'social capital' maps onto 'social infrastructure' (public goods for human development) or instead denotes social relations; comparing the two meanings helps test whether physical infrastructure equals social capital.
Contrasts physical capital formation with human capital formation, emphasizing that human capital is investments in people (education/health) rather than physical assets.
A student might use this contrast to place buildings/machines clearly in the 'physical capital' box and then check whether 'social capital' is typically categorized with human capital (social relations/skills) or physical capital.
- Defines social capital in terms of civic engagement, honesty and social trust β characteristics and relationships rather than demographic counts.
- Shows the concept's roots and typical measures focus on social behaviors and networks, not population-age structure.
- Treats the size/share of the working-age population as a demographic/economic statistic (projected counts and proportions).
- This passage presents working-age population as a population metric, distinct from social-capital concepts described elsewhere.
States that population is an asset when the maximum section is in the 15β64 (working) age group and links this to economic and social outcomes (employment, poverty, social problems).
A student could treat a large working-age share as a component of a country's social/economic assets and compare it to typical definitions of social capital (networks, norms) to judge overlap or distinction.
Defines human capital as knowledge, skills and capacities of people and explicitly argues for transforming the working-age population into human capital to gain demographic dividend.
A student could infer that the working-age population becomes an intangible asset (human capital) when trained, then assess whether 'social capital' is analogous or distinct from this human-capital role.
Describes population as a 'human resource' and explains human capital formation through education and health as an intangible productive asset.
A student could use this rule to separate 'size of working-age population' (resource) from 'human capital' (quality), then ask whether social capital would be quality/relations rather than mere size.
Explains age composition helps ascertain workforce and dependent population and shows how proportions change over time (dependency ratios).
A student could use dependency/workforce ratios from a country map or data to judge whether a high working-age share constitutes an asset potentially counted under social capital or should be treated separately.
Gives work participation rates and notes regional variations and links to levels of economic development, implying that working-age numbers alone don't equal productive contribution.
A student could extend this by checking participation/employment data: if many working-age are inactive, the mere size is less likely to serve as 'social capital'.
- Identifies mutual trust, toleration and a spirit of cooperation as core cultural values needed for federal unity.
- Links these social values directly to the smooth functioning of political arrangements and national harmony.
- States that an ideal federal system requires mutual trust and agreement to live together between governments/units.
- Connects trust as a social prerequisite for institutional power-sharing and stable governance.
- Treats harmonious social life as a plausible outcome expected from democratic arrangements.
- Explains how institutional procedures reduce tensions and support social harmony among diverse groups.
- [THE VERDICT]: Sitter. Solvable purely by eliminating standard definitions found in Class IX Economics (Chapter 2: People as Resource).
- [THE CONCEPTUAL TRIGGER]: The 'Forms of Capital' framework in Development Economics (Physical vs. Human vs. Social vs. Natural).
- [THE HORIZONTAL EXPANSION]: Memorize the 5 Capitals Framework: 1. Physical (Infrastructure), 2. Human (Skills/Health), 3. Social (Trust/Networks), 4. Natural (Ecosystems), 5. Financial (Stocks/Bonds). Also, distinguish 'Bonding' (exclusive) vs. 'Bridging' (inclusive) social capital.
- [THE STRATEGIC METACOGNITION]: When you study a term like 'Human Capital' in NCERT, explicitly ask: 'What is NOT Human Capital?' The exam tests the boundaries between these similar-sounding concepts.
Literacy is a core attribute that builds human capital by enhancing skills, productivity and employability of the population.
High-yield for economy and development questions: helps answer queries on human capital formation, demographic dividend and education policy. Connects population studies with labor productivity and economic growth; useful for questions comparing human vs other forms of capital.
- Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 7: Factors of Production > Challenges to human capital > p. 169
- Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Overview > p. 16
The quality of a country's population is measured by indicators such as literacy rate, life expectancy and skill formation.
Important for GS and essay papers when assessing development indicators and policy priorities. Links demography, public health and education policy; enables framing solutions-oriented answers on improving national capacity.
- Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Quality of Population > p. 20
- Economics, Class IX . NCERT(Revised ed 2025) > Chapter 2: People as Resource > Overview > p. 16
Census definition (person aged 7+ who can read and write with understanding) determines the reported proportion of literates in the population.
Necessary for accurate interpretation of literacy statistics and for critiquing or comparing datasets in exams and policy analysis. Useful for questions on indicators, measurement issues and programme targeting.
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > LITERACY RATE > p. 88
Machines, tools and buildings are physical capital, distinct from human capital which comprises education, health and skills.
High-yield for UPSC Economy and GS papers because many questions ask to compare types of capital and their roles in growth. Connects to topics like capital formation, productivity and human development priorities, and helps frame answers on policy trade-offs between investing in infrastructure versus education/health.
- Economics, Class IX . NCERT(Revised ed 2025) > Chapter 1: The Story of Village Palampur > Organisation of Production > p. 2
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 1: Fundamentals of Macro Economy > Human Capital: > p. 28
- Exploring Society:India and Beyond ,Social Science, Class VIII . NCERT(Revised ed 2025) > Chapter 7: Factors of Production > Capital > p. 172
Hard infrastructure (roads, energy, transport) is economic infrastructure, whereas schools, hospitals and parks represent social infrastructure aimed at human development.
Useful for answering policy and governance questions on inclusive growth, infrastructure financing and PPP models. Links infrastructure investment to HDI outcomes and helps structure essays/answers contrasting growth-centric and human-centric investment strategies.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > 15.2 Indian Economy > p. 438
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 14: Infrastructure and Investment Models > Mains Questions: > p. 444
Buildings, machines and infrastructure constitute the capital stock of an economy; investment is the addition to that stock in a period.
Essential for questions on national income accounting, growth measurement and macroeconomic policy. Enables clear explanations of gross investment, replacement/maintenance of capital, and the distinction between stock-and-flow concepts in economic analysis.
- Macroeconomics (NCERT class XII 2025 ed.) > Chapter 2: National Income Accounting > p. 12
- Macroeconomics (NCERT class XII 2025 ed.) > Chapter 4: Determination of Income and Employment > 4.1.2. Investment > p. 56
The proportion of people aged roughly 15β64 is presented as an asset for a country's economy when they are employed and not living in poverty.
High-yield for questions on population policy, dependency ratios and economic development; connects population structure to labour-force potential and informs arguments about policy measures to harness or mitigate demographic effects.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 19: Population and Demographic Dividend > MEASURES TO CHECK POPULATION EXPLOSION > p. 564
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 13: Cultural Setting > Occupational Strucure > p. 97
Pierre Bourdieu's 'Cultural Capital' (education, style of speech, dress) vs. 'Social Capital' (who you know). Expect a question distinguishing 'Human Capital' (what you know) from 'Cultural Capital' (how you present it).
The 'Tangible vs. Intangible' Heuristic. Options A (Literacy rate), B (Buildings), and C (Population size) are quantitative, tangible statistics. Option D (Trust/Harmony) is qualitative and intangible. 'Social' concepts are rarely physical stocks; they are relational flows. Pick the intangible option.
Mains GS-2 & GS-4: Social Capital is the bedrock of 'Good Governance'. Low social capital leads to high transaction costs (corruption, litigation) and communal violence (Internal Security). Use this term in essays on Civil Society.