A closed circuit is a complete loop or path that electricity follows. It consists of a source of voltage, a load, and connective conductors. If the circuit is interrupted, if a wire is disconnected or cut for example, it becomes an open circuit and no electricity will flow.

In a parallel circuit, each load occupies a separate parallel path in the circuit and the input voltage is fully applied to each path. Unlike a series circuit where current (I) is the same at all points in the circuit, in a parallel circuit, voltage (V) is the same across each parallel branch of the circuit but current differs in each branch depending on the load (resistance) present.

Resistors are used to limit voltage and/or current in a circuit and can have a fixed or variable resistance. Variable resistors (often called potentiometers or rheostats) are used when dynamic control over the voltage/current in a circuit is needed, for example, in a light dimmer or volume control.

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.

Voltage (V) is the electrical potential difference between two points. Electrons will flow as current from areas of high potential (concentration of electrons) to areas of low potential. Voltage and current are directly proportional in that the higher the voltage applied to a conductor the higher the current that will result.