ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Productive capacity is the maximum possible output of an economy.

Detailed explanation-2: -"Productive capacities are the productive resources, entrepreneurial capabilities and production linkages that together determine a country’s ability to produce goods and services that will help it grow and develop."

Detailed explanation-3: -Production capacity is the maximum output that can be achieved in the production process of manufactured goods. It’s generally a part-based metric that identifies the most goods that can be created given a set amount of resources (time, labor, materials).

Detailed explanation-4: -Potential output is the maximum amount of goods and services an economy can turn out when it is most efficient-that is, at full capacity. Often, potential output is referred to as the production capacity of the economy.

Detailed explanation-5: -A nation’s productive capacity reflects the potential output of an economy. It depends on: Size of the workforce (quantity of labour). This is the number of people of working age who are economically active.