Final answer:
Children better distinguish reality from appearance as they develop theory-of-mind (TOM), typically between 3 and 5 years old. They move from egocentric thinking to understanding that others have different perspectives and beliefs. The concept of object permanence also develops, where children recognize that objects continue to exist even when unseen.
Step-by-step explanation:
Research has shown that children are better at distinguishing between reality and appearance as they develop theory-of-mind (TOM). Between the ages of 3 and 5 years, children begin to realize that others have their own thoughts, feelings, and beliefs which may be different from their own. This cognitive advancement allows them to understand concepts such as false beliefs and object permanence.
With the acquisition of theory-of-mind, children are also able to engage in more complex social interactions, such as teasing or persuading parents. They transition from egocentric thinking to a more realistic understanding of their social environment. Additionally, they exhibit a greater awareness of life's realities, focusing on achievable future goals like becoming an engineer instead of a wizard.
Early developmental psychologists, like Jean Piaget, revealed that very young children do not understand object permanence—the concept that objects continue to exist even when they are not seen. However, by the toddler years, children enjoy games like hide and seek, acknowledging the return of someone who leaves the room, which demonstrates their grasp of object permanence.