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.

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.

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.

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.

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 DC is a battery. 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.