When children hear a new word in a familiar context, they can ...

[OSWALD]

When children hear a new word in a familiar context, they can simply add the word to the general category without fully understanding the word. This is called
 
  lexical addition.
  categorical embellishment.
  vocabulary expansion.
  fast-mapping.

Question 2

Logical extension involves
 
  applying a newly learned word to other objects in the same category.
  mentally charting new words.
  applying a new concept to a preexistent category.
  equilibration.

[Missbam101]

Answer to Question 1

fast-mapping.

Answer to Question 2

applying a newly learned word to other objects in the same category.

[OSWALD]

Great answer, keep it coming

[blakcmamba]

Excellent