Final answer:
The correct option is a) True. Paul Terry was indeed known for cheap animation through his studio, Terrytoons, which famously created Mighty Mouse.
Step-by-step explanation:
The question is whether Paul Terry is known for cheap animation. The answer to this question is true. Paul Terry was an American animator and the founder of Terrytoons, a studio established in 1929 that was known for producing economically made, yet charming and entertaining animated cartoons for many years. The studio's most famous character, Mighty Mouse, an anthropomorphic superhero mouse, emerged as a notable figure in animation despite the studio's reputation for its cost-effective approach to animation production.