Final answer:
A tool that is powered by compressed air is described as pneumatic. This term distinguishes it from other types of tools, such as hydraulic, powder-actuated, or electrical.
Step-by-step explanation:
The term that describes a tool that is powered by compressed air is pneumatic. Unlike hydraulic tools which operate based on the application of pressure to a liquid, pneumatic tools utilize the force of compressed air to function. This form of power is used in various equipment and settings, including assembly lines, construction sites, and tire repair shops, where tools like pneumatic drills, wrenches, and hammers are common.