Plot versus premise

I'm taking a little break from my World Lit reading, mainly because about eight of my reservations came in at the library at once, and most of them are YA paranormal/fantasy or contemporary novels. So today, I'd like to talk a little about plot and premise.

I've read a lot of work by my fellow aspiring authors over the past few years. Some of this has been for friends or creative writing classmates, and some for my freelance editing work. One problem I see fairly often in beginning writers (it was a problem for me too) is confusion over plot and premise. I think this is because, generally, when you ask someone what a book is about, you are actually asking about the premise, not the plot. Not what happens in the book, but the situation the main character finds himself or herself in.

Example: Katniss, who lives in the dystopian future, is forced to take part in the Hunger Games, a brutal fight to the death with twenty-three other kids as opponents. (Premise.)