The name for a system formed by the interaction of living organisms with their nonliving physical environment is an ecosystem.

Here's a breakdown:

* Living organisms: This includes all plants, animals, fungi, bacteria, and other living things within a specific area.

* Nonliving physical environment: This includes things like air, water, soil, sunlight, temperature, and other abiotic factors.

Ecosystems can be small (like a puddle) or large (like a forest). They are complex and dynamic, with the living and nonliving components constantly interacting and influencing each other.