Nodes are dots used to mark locations. Nodes can be separate or can be connected. Ways are a connected line of nodes. Used to create roads, paths, rivers, and so on. Closed ways are ways that form a closed loop. Usually form areas. Areas are closed ways which are also filled. An area is usually implied when making a closed way. Relation can be used to create more complex shapes, or to represent elements that are related but not physically connected.
All these elements can carry tags.