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A closed system can exchange energy with its surroundings, but not matter, while an isolated system cannot exchange either energy nor matter. For example, an example of a closed system is a pan with a lid, on top of a stove. The pan is exchanging heat energy from the fire, but not the amount of matter inside the pan. On the other hand, an isolated system would be like an insulated thermal cup where neither energy nor matter is being exhanged with the environment.
In a closed system, energy can be exchanged with its surroundings. For example, if you put a lid on a pot, matter cannot be exchanged, but energy can still be transferred. In an isolated system, nothing is exchanged with its surroundings. An example of this is a thermos; however, it is not 100% perfect.
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