Final answer:
The correct response when approaching a school bus displaying flashing amber lights is to proceed with caution, as the bus is preparing to stop. It's crucial to remain vigilant for children near the bus.
Step-by-step explanation:
When approaching the rear of a school bus that is displaying alternating flashing amber lights, a driver must Proceed with caution. These lights indicate that the bus is preparing to stop to load or unload children. In many regions, these lights are a signal to slow down and prepare to stop. It is important to remain alert and watch for children in the vicinity of the bus. Once the bus extends its stop sign or displays flashing red lights, traffic in both directions on an undivided roadway must come to a complete stop.