Rojash is on the money.
There are two main ways of drawing pictures.
One way is to imagine the picture as being made of lots of little dots, but really small dots so that you can't see them (and just the picture that they make up). These are called raster images. Photoshop is an example of an editor that uses raster images. Windows Paint and Gimp are two other example packages.
Another way is to write the mathematical equations for the lines and curves and points in the picture. These are called vector graphics.
Raster images have certain advantages, and are useful for composing photographs. Photos get a bit complicated to be drawn as vector graphics though, so they aren't usually used for this. Instead, vector graphics are usually used for logos, poster art, that kind of thing. Big solid blocks of colour, nice mathematically-described straight lines and curves, and some text.
Because vector graphics are described with mathematics, they can just all be multiplied by 2 for example, to get an image twice the size. No loss of quality, because the image is just redrawn at this size, according to the mathematics. If you did this with a raster image, you'd have to make all the dots twice as large, making them more visible, and the image would start to look weird.
Advantages of other vector graphics software inclues Inkscape (free), and Vector Designer on the Mac. Corel draw is also a vector package.