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.