Three experiments tested 3- and 4-year-olds' use of abstract principles to classify and label objects by shape or function. Findings indicated that 4-year-olds readily adopted either rule when instructed to match objects by shape or function, but 3-year-olds followed only the shape rule. Without a rule, 4-year-olds tended to match by shape unless object function was shown during matching. Three-year-olds were learning that object labels are based on function. (Author/KB)