Final answer:
A child obeying traffic laws exhibits moral development according to Kohlberg's theory, particularly at the conventional level where societal norms guide behavior. According to Kohlberg's theory of moral development, the type of development being demonstrated when a school-aged child always follows the rules and obeys traffic lights when crossing the street is moral development (option C).
Step-by-step explanation:
The behavior of a school-aged child who always follows the rules and obeys traffic lights when crossing the street demonstrates moral development, as per the Lawrence Kohlberg's theory of moral development. At the conventional level of Kohlberg's model, individuals behave in ways that conform to societal rules and norms, which includes obedience to laws and rules such as traffic lights, often due to the influence of societal expectations rather than personal moral reasoning.