Final answer:
The characteristic of life observed in the comparison of a caterpillar, cocoon, and butterfly is growth and development, as it shows the organism's transformation through its life stages. This process is distinct from other characteristics such as reproduction or homeostasis.
Step-by-step explanation:
When comparing a caterpillar, cocoon, and fully grown butterfly, the characteristic of life that one is observing is growth and development. These stages showcase the transformation of the organism through different life stages, which is a core aspect of living things. All living things share key characteristics such as order, sensitivity or response to stimuli, reproduction, growth and development, homeostasis, and more.
Homeostasis is the maintenance of a constant internal environment, despite external changes. This is not what is being observed in the transformation of a caterpillar to a butterfly. Instead, what is being observed is the process called metamorphosis, which is part of their growth and development.
A cell is the basic unit of structure and function in living things. And, making the next generation is known as reproduction, which is separate from the growth and development process being demonstrated by the caterpillar, cocoon, and butterfly. To determine if something is living, such as a potential stick insect, one would look for signs of these key characteristics.