Mention two factors that determine the supply of labour.
Factors determining the supply of labour:
1) Population: The most important factor affecting the supply of labour in a country is its population. A larger population with necessary skills to perform physical or mental work will increase the supply of labour to the market.
2) Age structure: The total population of an economy is not considered the supply of labour. Supply of labour depends on the age structure of the population. Legally, age is determined to work and not work. Child labour is prohibited by law. Salaried people have to retire after attaining a certain age. Hence, only a certain age group of people is considered the supply of people.