Final answer:
An open system allows both matter and energy to enter and exit, such as a pot of boiling water where heat energy is received and water vapor escapes.
Step-by-step explanation:
The type of system that allows both matter and energy to enter and exit is an open system. In an open system, there is an exchange of energy and matter with the surroundings.
For example, a pot of boiling water is considered an open system because it receives heat energy from the burner, and water vapor, which is matter, escapes as the water boils.
In contrast, a closed system can exchange energy but not matter with its surroundings, like a sealed pouch that is heated in boiling water but does not exchange its contents with the surrounding water. Lastly, an isolated system does not exchange energy or matter with its surroundings, although in practice a truly isolated system does not exist outside of a theoretical context.