'mouseClicked' returns true if the mouse was pressed on the object and released afterwards. 'mousePressed' returns true when the mouse was pressed on the object.
You can use this in a class code. Then 'this' is the object of the class in which this code is executed. Instead of 'this', you can also use 'null' (any click (like descripted above) returns true) or a reference to an actor (not a class). If you use 'this' in a world subclass, it returns true if the click was made on the background of the world (so on no actor).