Final answer:
The statement concerning dreams as a by-product of mental housekeeping theory is false as it doesn't specifically categorize information as wanted or unwanted but rather emphasizes the importance of dreams in emotional and memory processes.
Step-by-step explanation:
The statement that in the dreams as a by-product of mental housekeeping theory, theorists believe we divide new information into wanted and unwanted categories is False. This theory suggests that dreaming is a way for the brain to process new information and integrate it into existing knowledge networks. It's not specifically about categorizing information as wanted or unwanted. Instead, it emphasizes the importance of dreams for emotional regulation and memory consolidation. Different theorists like Freud, Jung, and Cartwright have explained dreams based on various psychological theories, from Freud's emphasis on dreams being insights into our unconscious mind and repressed memories to Jung's concept of collective unconscious and archetypes, and Cartwright's empirical research on dreams reflecting significant waking-life events.