Hz Mhz Ghz is a measure of cycles per second based on a sine wave. The number you are seeing is cycles per second. 2 Ghz is 2 billion cycles per second, or on and offs (CPUs work in Binary 1 or 0, yes or no, true or false). Each CPU is made up of regions of transistors that perform certain functions based on what they are designed to do.
Now, as the technology increases the number of transistors on the given space also increases. You have to understand that the Silicon wafers the CPUs are printed on are extremely expensive to produce so real estate is a major issue. With those increases in technology (ie 90nm 65nm 45nm, where nm is the wavelegnth of IR light used to produce the transistors.) they are able to put more transistors on the same amount of material. So your 2.8 Ghz Proc is based on an older, 90 and above, nm technology, therefore on the same sized die there is less transistors performing computing processes, than the newer ones. (The transistors are in the Hundreds of Millions)
Another factor is the chip designers ability to "streamline" how the processor computes a given set of instructions (as in the newer models can perform the same task more efficiently than their older counterparts.)
Also noted is Cache. Cache memory is memory that is built directly into the CPU and runs at full CPU speed with zero latency VS your system Memory or RAM that runs at a speed slower than your CPU (between 8-10 times slower). The CPU can use the cache to perform its calculations at a faster pace than if it was to wait on the system memory. So in most cases a larger Cache will also help the CPU perform faster, and with the shrinking of CPU technology (45nm) they are able to fit more cache on the same amount of space, at zero cost to wafer real estate.
Zang