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No, it does not necessarily mean that the system is linear. A linear system will exhibit a constant scaling property, which means that if the input is multiplied by a constant, the output will also be multiplied by the same constant. It is possible for a system to have an output of zero for a zero input, but still be non-linear if it does not exhibit the scaling property.
There are many examples of these. I would compare a linear device as a device giving a linear output as a result of the input. This can be an amplifier or simply the circuits that makes up the amplifier. A non-linear device could be a computer chip or a logic chip that is either on or off (only 2 stages) on both input and output. Some devices combine linear and non linear working modes. A typical OpAmp has got 2 inputs that can vary, where as the output is either On (close to input voltage of the circuit) or Off (close to input negative voltage or GND of the circuit) Other forms of linearities can be within a single transistor. It may have a linear voltage curve. This curve can also be non linear. This most often very dependent upon temperature.
Non negative output
A function may be defined over only certain values. That is, it may have only a certain set of values that can serve as input. For example, in elementary mathematics, the principal square root is only defined for non-negative real numbers. This is the "area" over which the function is valid and so it is called the domain. The mathematical term for the set of output values is actually the co-domain, but many people refer to it as the range.
Let's illustrate with an example. The square function takes a number as its input, and returns the square of a number. The opposite (inverse) function is the square root (input: any non-negative number; output: the square root). For example, the square of 3 is 9; the square root of 9 is 3. The idea, then, is that if you apply first a function, then its inverse, you get the original number back.