Final answer:
The statement that knowledge is considered a fifth factor of production is true. Enlightenment thinkers did challenge the idea that wealth is finite, recognizing the role of knowledge, innovation, and technology in creating wealth. Knowledge helps form a comparative advantage by contributing to different levels of productivity.
Step-by-step explanation:
The statement that many people consider knowledge to be a fifth factor of production is True. Traditionally, the four main factors of production have been identified as land, labor, capital, and entrepreneurship. However, knowledge, or specifically human capital, has increasingly been recognized as a critical asset that can enhance productivity and drive economic growth.
Enlightenment thinkers did indeed reject the mercantilist idea that wealth is finite and suggested that wealth could be created. This shift in thought laid the groundwork for modern economic theories that recognize the importance of innovation, technology, and the education of workers in creating new wealth.
As for comparative advantage, this economic concept suggests that different levels of productivity can be a source of advantage, not just differences in the factors of production. This means that knowledge, human capital, and technological advances are also integral to establishing a comparative advantage in the global market.