There is a huge difference between vector and raster images. Raster is defined by a grid of pixels arranged in columns and rows with a specific color. Vector graphics, on the other hand, are not defined by pixels and are not constricted to a grid format. Vector graphics are given instructions by the computer about how the objects should be shaped and their relative size. By using these instructions instead of pixels, images can be scaled and redrawn without losing their quality or distorting. Since it takes fewer instructions for the computer to define a vector graphic than a raster graphic, vector graphics are generally smaller in file size.

The left side represents a vector image, the right side shows a raster image.
Notice the pixels in the raster image when they are both magnified equally.
There are two types of color systems. Print uses a color system known as CMYK (Cyan Magenta Yellow Black) while computers use RGB (Red Green Blue). CMYK are the four colors that printers have to create a wide range of colors by bunching all the colors together in a range of patterns to create the illusion of another color. CMYK is used because it would be impossible for print shops to have a different colored ink for every color printed, so we mix the four to create the illusion of multiple colors.
Common vector file formats include:
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 AI (Adobe Illustrator)
 CDR (CorelDRAW)
 CMX (Corel Exchange)
 CGM (Computer Graphics Metafile)
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 EPS (Encapsulated Post Script)
 DXF AutoCAD
 WMF (Windows Metafile)
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Common bitmap file formats include:
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 BMP
 GIF
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 JPEG
 PNG
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 PCX
 TIFF
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 PICT (Macintosh)
 PSD (Adobe Photoshop)
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