Higher resolution means more image detail, with pixels being the smallest component of an image. Common file formats include BMP for bitmap images, PNG for lossless compression, GIF for images under 256 colors like logos, and JPG for photographs with over 256 colors. Other formats include PSD for Photoshop files, PDF for documents, EPS for illustrations, and AI for Adobe Illustrator artwork. Key terms also include compression to reduce file size, image capture to convert analog images to digital, and optimizing and storage of image data.