The earth's magnetic field acts upon the magnetic material of the compass needle, causing it to align to the field. Thus, the compass appears to point North, which is "magnetic north". Magnetic north and "true north" are about 300 miles apart.
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The needle of a compass is a magnet, and the earth is also a magnet. The side of the compass marked N is attracted to the north pole of the Earth, and the side marked S is attracted to Earth's south pole. The compass will spin to line itself up with the poles it is attracted to. However, if you have other magnets nearby, the compass can spin to line itself up with those instead.
OK- first, it is a compass. The needle of a compass is a magnet. It points to the Eath's Magnetic Poles- the two spots where the Earth's magnetic field comes out of the ground. In magnetism, opposites attract, likes repel.
The earth's outer core produces the magnetic field.
The only way to make current flow through a compass needle is to connect a wire to each end of the needle. When you do that, the direction the needle points is completely determined by the wires, and it's no longer free to rotate. So I'd say that nothing at all interesting happens.
Yes. I can be done using iron filings and a clear piece of plastic. Pour on the iron filings, put on the plastic, and then the magnet. The iron filings should form the shape of the magnetic field around it. If that does not work, here is a link to a picture... http://www.fi.edu/htlc/teachers/lettieri/magneticfields.jpg Hope that helps.