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.

Current is the rate of flow of electrons per unit time and is measured in amperes (A). A coulomb (C) is the quantity of electricity conveyed in one second by a current of one ampere.

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.

Electrical wires have a certain amount of resistance per foot. A longer wire means more resistance and a greater voltage drop.

Electrical power is measured in watts (W) and is calculated by multiplying the voltage (V) applied to a circuit by the resulting current (I) that flows in the circuit: P = IV. In addition to measuring production capacity, power also measures the rate of energy consumption and many loads are rated for their consumption capacity. For example, a 60W lightbulb utilizes 60W of energy to produce the equivalent of 60W of heat and light energy.