*Question G7B05:
How many states does a 3-bit binary counter have?*  

*Correct Answer is  C: 8*  

### AI Response: (may contain errors)  

A 3-bit binary counter can represent different states based on the number of bits it has. Each bit can be either 0 or 1, which means it has 2 possible states. To find the total number of states a binary counter can have, you use the formula:

$$
\text{Number of states} = 2^n
$$

where $n$ is the number of bits.

For a 3-bit binary counter:

- $n = 3$
- Therefore, the number of states is $2^3 = 8$.

This is why the correct answer is C: 8.

### Explanation of Other Choices:
- **A: 3**  
  This choice is incorrect because it does not account for the exponential growth of states with each additional bit. A 3-bit counter cannot have only 3 states.

- **B: 6**  
  This choice is incorrect for the same reason. A 3-bit counter cannot have 6 states; it must be a power of 2.

- **D: 16**  
  This choice is incorrect because 16 states would require a 4-bit counter, as $2^4 = 16$.

### Key Point:
- A binary counter with $n$ bits always has $2^n$ states. For a 3-bit counter, this results in 8 states.