Final answer:
True, fluid intelligence is the capacity to organize information and develop new hypotheses, key for solving complex, abstract challenges. Cattell's theory divides intelligence into fluid and crystallized intelligence, with fluid intelligence playing a major role in problem-solving and reasoning.
Step-by-step explanation:
True, fluid intelligence is the ability to impose organization on information and to generate new hypotheses. It encompasses the capacity to see complex relationships and solve problems. Fluid intelligence allows individuals to tackle complex, abstract challenges in daily life.
Raymond Cattell's theory of intelligence categorizes general intelligence into two components: crystallized intelligence and fluid intelligence. While crystallized intelligence involves acquired knowledge and the ability to retrieve it, fluid intelligence is about processing, reasoning, and problem-solving without relying on learned knowledge, making it much more than just recalling information.
Some interesting related concepts are the Flynn effect, which is the observation that each generation scores higher on IQ tests than the one before, and functional fixedness, a cognitive bias that limits a person to using an object only in the way it is traditionally used. These concepts highlight the dynamism and complexity of human cognitive abilities.