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Question:

What should you be able to see if the outside convex mirrors are adjusted properly?

A The entire side of the bus up to the mirror mounts, front of the rear tires touching the ground, and at least one traffic lane on either side of the bus.
Explaination

You should position these mirrors to see: (1) The entire side of the bus up to the mirror mounts. (2) The front of the rear tires touching the ground. (3) At least 1 traffic lane on either side of the bus.