Its surprising, but a lot of people do actually know what these things are. Firstly let us explain hosting
Hosting is basically rental space on the internet. In real life you need to pay for storage to look after your stuff Companies like storage Australia will have garages usually secured by guards and locks. You know were your storage box is by the number you are given and you will have access to your things with the key you are provided with.
Well hosting is storage for the internet what you store on the internet are your data makes your website work they way you want it to. Your data is stored in secured available 24/7 online spaces called servers they are usually secured by things called firewalls to keep hackers away, you have access to this by the number you are provided and with this number you or your sites programmer can add and remove data as he pleases. That is a very basic explanation of what hosting is
Now what about the domain name ... This video from youtube does a really good job of explaining what hosting is.