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Imagine the points that make up a circle. If you multiply together any of the points on the circle, you get a point that is still on the circle. This means we have created a group whose operation is multiplication and whose elements are the points on a circle. If you look at a very small part of the circle, it looks like a line. This means that it is a manifold. So, the group of points that make up a circle is in fact a Lie group.
Lie groups were named after a Norwegian mathematician, Marius Sophus Lie.[1]
Lie groups are useful in different parts of physics because they can represent symmetries in a system.