Which city's name serves as the capital of Panama?

Panama City serves as the capital of Panama, which is crucial for understanding the geography and administrative structure of the country. This designation is significant because Panama City is not only the political center but also the largest city in Panama, contributing to the country’s economy and cultural identity.

Additionally, Panama City plays a key role in international trade, largely due to the Panama Canal, which connects the Atlantic and Pacific Oceans. The city's strategic location and its function as a hub for commerce and transportation underscore its importance as the capital.

In contrast, the other cities listed are capitals of different countries. Tegucigalpa is the capital of Honduras, San Salvador is the capital of El Salvador, and San Jose is the capital of Costa Rica. Each of these cities has its own distinct significance and role within their respective nations, but they do not serve as the capital of Panama. Recognizing these differences is essential for grasping the regional dynamics of Central America.