In contrast to the constant one-way flow of direct current, alternating current changes direction many times each second. Electricity is delivered from power stations to customers as AC because it provides a more efficient way to transport electricity over long distances.

Direct current flows in only one direction in a circuit, from the negative terminal of the voltage source to the positive. A common source of direct current (DC) is a battery.

Circuits containing transistors are packaged into integrated circuit chips that allow encapsulating complex circuit designs (CPU, memory, I/O) for easier integration into electronic devices and machines.

A transformer utilizes an inductor to increase or decrease the voltage in a circuit. AC flowing in a coil wrapped around an iron core magnetizes the core causing it to produce a magnetic field. This magnetic field generates a voltage in a nearby coil of wire and, depending on the number of turns in the wire of the primary (source) and secondary coils and their proximity, voltage is induced in the secondary coil.

The transistor is the foundation of modern electronic devices. It is made entirely from semiconductor material (making it a solid state device) and can serve many different functions in a circuit including acting as a switch, amplifier, or current regulator. A transistor works by allowing a small amount of current applied at the base to control general current flow from collector to emitter through the transistor.