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This study deals with an investigation of adult ability to understand aspects of semantic ambiguity and, as a corollary, the developing ability of children to understand these same linguistic structures. Current linguistic theories based on the insights of transformational-generative grammarians led by N. Chomsky (1957) have been concerned with developing rules which account for adult native speakers' intuitions about their language. Abilities imputed to adults include the recognition of paraphrases, anomalous sentences, synonymous sentences, and ambiguous sentences (Katz, 1972) . As noted by Mayher (1970) , for centuries philosophers and linguists have been hypothesizing the developmental aspects of language acquisition. Current linguistic theories it possible to understand the complexities of language and investigate their development. The rules of language, which are tacitly acquired, constitute a grammar of competence or a competence model. Grammarians make a fundamental distinction between competence (the speakerhearer's knowledge of his language) and performance (the actual use of language in concrete situations) (N. Chomsky, 1965, p. 47) . Therefore, one focus of this investigation was the tapping of linguistic competence for the 40 adults and 50 children interviewed, all of whom were native speakers of American English.