The generator effect is the induction of a potential difference (leading to a current) when a wire experiences a change in magnetic field) (2 marks)In a transformer, there are primary and secondary coils. An AC current is fed into the primary coil (1 mark), leading to an alternating magnetic field being passed to the secondary coil in an iron core (1 mark). By the generator effect, this induces a potential difference and hence current in the secondary coil (1 mark). The relative number of coils between primary and secondary determines the potential difference produced (1 mark).