Productive capacity

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Productive capacity is a term used to define maximum possible output of an economy. According to UNCTAD, no agreed-upon definition exists. UNCTAD itself proposes: "the productive resources, entrepreneurial capabilities and production linkages which together determine the capacity of a country to produce goods and services." The term ‘productive capacity’ is also used in binary economics to mean income-generating capacity be it of a factory, land, patent or the labour skills of an individual.