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

*Correct Answer is  C: 8*  

### AI Response: (may contain errors)  

To determine how many states a 3-bit binary counter has, we can use the formula for the number of states in a binary counter, which is given by:

$$
N = 2^n
$$

where:
- $N$ = number of states
- $n$ = number of bits

For a 3-bit binary counter:

- Here, $n = 3$.
- Therefore, the number of states is:

$$
N = 2^3 = 8
$$

### Explanation of the Correct Answer:
- The correct answer is **8** because a 3-bit binary counter can represent values from $000_2$ (0 in decimal) to $111_2$ (7 in decimal), which totals 8 distinct states (0 through 7).

### Why the Other Choices are Incorrect:
- **A: 3**: This is incorrect because a 3-bit counter can represent more than just 3 states. It can represent values from 0 to 7.
- **B: 6**: This is also incorrect. While it may seem like a reasonable number, a 3-bit counter can represent all combinations of 3 bits, which is 8.
- **D: 16**: This is incorrect as well. A 16-state counter would require 4 bits, since $2^4 = 16$. 

### Summary:
- A 3-bit binary counter has **8 states** because it can represent all combinations of 3 bits, calculated as $2^3 = 8$.