When it comes to algorithms, you frequently have to evaluate problems like this:
Let $x$ be an $n$-bit integer. For each of the following questions, give your answer as a function of $n$.
Or a question like this:
[given algorithm] Assume that the subtraction takes $O(n)$ time on an $n$-bit number.
What does "let $x$ be an $n$-bit integer" really mean? It is just the amount of bits reserved for a random int variable $x$? How does the $n$-bit number relate to the big $O$ of $n$ notation?
It asks you how does the space/time of algorithm evaluation growth with $n$. O(n) means linear dependency. $O(n^2)$ is square dependency, $O(e^n)$ is exponential.