In the NM cable used for wiring homes, each cable has three wires inside a sheath with each wire covered in a different color of insulation to indicate its type. The wire with the black insulation is the 'hot' wire, white is the neutral wire, and the ground wire is either covered in green insulation or left bare.

Electrons flow from an area of high concentration to an area of low concentration. A high voltage indicates a high concentration of electrons that creates a greater potential for electron flow than a low voltage. When applied to a load, voltage creates electricity and potential difference is the measure of voltage at a specific location in an electrical circuit.

Insulators have valence shells that are more than half full of electrons and, as such, are tightly bound to the nucleus and difficult to move from one atom to another.

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.

All conductors have resistance and the amount of resistance varies with the element.  But, resistance isn't the only consideration when choosing a conductor as the most highly conductive elements like silver and gold are also more expensive and more brittle than slightly less conductive elements like copper. A balance needs to be struck between the electrical qualities of a material and its cost and durability.