I haven't checked on my compiler what the capacity is when no reserve is given, but I always suspected it was zero when no elements exist in the vector.
C++ containers are designed to grow in size dynamically. This frees the programmer from having to worry about storing an arbitrary number of elements in a container. However, sometimes the programmer can improve the performance of her program by giving hints to the compiler about the size of the containers that the program will use. These hints come in the form of the reserve() function and the constructor used in the above example, which tell the compiler how large the container is expected to get.