Sneaky bouncy ball.

its seems larger do to whats around it. you can compare the size to the things around it. you see the railroad tracks and the moon, rather than a moon in a huge open sky. your yes take in more when the moon is closer to earth, to us the objects around it make it look large, rather than it in the sky.

When it comes to the moon, you by instinct think of it in the same way: The moon is close to the horison. Thereby it should be on a greater distance than when it is passing your head. But since the moon of course follows its path on the same distance above our ground your mind conclude that the moon has to be larger in the first case (it HAS to be bigger to appear to have the same size to your eye)than when it is higher up in the sky.

Try it for yourselves: Make a black dot, big as a coin, on a white paper. Stare on it for about one minute. Move your eyes to a white area on the paper. You now should have a copy of the “moon” as a shadow in your vision. Now to the cool part: Move the paper closer to your face, and watch the size of the moon diminish! Look at a wall at greater distance, and see the moon being enormous!! This is a really cool illusion! This is possible because your brain automaticly is interpreting the picture to be projected on the surface and at the same distance as the surface.

I think when the moon is in the sky, you compare it to everything around it, and the large sky like a sea and the moon an island, it looks small. But when you see it on the horizon, the horizon helps you to look at the edges and how far they go out.