Final answer:
The statement is true because our brain uses size constancy to interpret the size of distant objects despite their smaller retinal images, maintaining a consistent perception of their actual size.
Step-by-step explanation:
The statement is true: when an object is far away, we tend to perceive its actual size, even though the image it casts on the retina is smaller than when the object is closer. The reason for this phenomenon is related to a concept in psychology known as size constancy, which allows us to maintain a consistent perception of an object's size regardless of its distance from us. This occurs because the apparent size of an object perceived by the eye depends on the angle the object subtends from the eye, not just the size of the image on the retina.
As an object moves farther away, the angle it subtends becomes smaller, and thus it forms a smaller image on the retina. However, the brain takes into account the distance of the object and other visual cues, allowing us to understand that the object is not actually shrinking, but simply becoming farther away. Therefore, a faraway object appears smaller to the retina, but our brain interprets its size based on our knowledge of its distance using cues from the environment.