Answer from cs61c-ck (Allen Lee 16583554) for Question 2
Humans are finite state machines.  We can receive the same input (stimuli) on two different days and output (respond) differently, depending on our state (mood).  Although it's debatable whether or not we have a finite number of states.

A digital watch is also a FSM - in order to print the next digit, it needs to know what time it was before.

Traffic lights are also FSMs - they need to know what light was on before changing.