Michael Faraday discovered electromagnetic induction in 1831. He hypothesized that a changing magnetic field is necessary to induce a current in a nearby circuit. To test his hypothesis he made a coil by wrapping a paper cylinder with wire. He connected the coil to a galvanometer, and then moved a magnet back and forth inside the cylinder.
Setup is simple - attach the galvanometer to the coil (as in the product photo) using the included connecting wires. Next, attach the included magnet to the metal end of the included rod and insert the magnet into the center of the coil. Moving the magnet back and forth, notice that the galvanometer needle moves, indicating that a current is induced in the coil. Notice also that the needle immediately returns to zero when the magnet is not moving. Faraday confirmed that a moving magnetic field is necessary in order for electromagnetic induction to occur.