STEP-BY-STEP ANSWER:
Step 1: Recognize that the Moon lacks significant atmospheric protection, meaning that meteoroids strike its surface without burning up.
Step 2: Understand that when these meteoroids hit, they release immense kinetic energy, creating shock waves that displace and melt the surface material.
Step 3: Observe that the displaced material forms a circular depression, known as an impact crater, which may have raised rims or central peaks depending on the impact's size and angle.
Step 4: Conclude that the density and distribution of craters provide insights into the Moon's history of impacts and its geological inactivity.
Final Answer: Impact craters on the Moon are formed when meteoroids collide with its surface, releasing energy that creates shock waves, excavates material, and results in a circular depression.