Engineering Thermodynamics
Otto cycle efficiency is higher than Diesel cycle efficiency for the same compression ratio and heat input because in Otto cycle

Heat rejection is lower
Expansion and compression are isentropic
Combustion is at constant volume
Maximum temperature is higher

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Engineering Thermodynamics
A closed system is one in which

Mass crosses the boundary but not the energy
Both energy and mass cross the boundaries of the system
Neither mass nor energy crosses the boundaries of the system
Mass does not cross boundaries of the system, though energy may do so

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