The early 1900s was a period in which the field of psychology was developing as an independent discipline. During this time, Carl Jung proposed core ideas in his exploration of personality, including the constructs of introversion and extroversion. 
Suggested that the interest of the introvert is directed inwards; they think, feel, and act in ways that suggest the subject is the prime motivating factor. Extroverts, on the other hand, direct their interest outwards to their surrounding environment; they think, feel, and act in relation to external factors rather than the subjective.
In reality, most of us exhibit qualities of both and fall somewhere between the two. Rather than existing as a clear-cut label, extroversion is regarded as a spectrum with individuals exhibiting a range of behaviors associated with both.