Raster graphics are made up of pixels arranged in a grid, with each pixel recording a color. They have a fixed resolution and image quality degrades with scaling. Vector graphics use mathematical formulas and vectors to describe shapes and graphics. They can be scaled to any size without loss of quality and are well-suited for logos. Common file formats include JPEG for photos, TIFF for print graphics, GIF for web animations, BMP for images without compression, PSD for layered Photoshop files, and AI/WMF for vector illustrations. Compression reduces file sizes but can cause loss of image quality from additional editing.