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

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

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Engineering Thermodynamics
A closed system is one in which

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

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