1. An electronic camera adapted for capturing and processing images of different resolution, said camera comprising: an image sensor having a two-dimensional array of photosites covered by a pattern of luminance and chrominance color filters; means for generating an image signal corresponding to a two-dimensional image captured by said image sensor; means for selecting one of a plurality of resolution levels for the image signal, said resolution levels providing a full resolution image arranged according to said pattern of color filters and at least one reduced resolution image; and a processor responsive to a selected reduced resolution level for operating on the image signal by averaging areas of said captured image to produce a reduced resolution image arranged according to a pattern that replicates the pattern of color filters seen in the full resolution image.