What distinguishes a closed system from an open system?

A closed system is characterized by its ability to exchange energy with its surroundings while restricting the transfer of matter. This means that within a closed system, heat or work can be exchanged with the environment, allowing changes in energy, but the mass of the system remains constant because no material can enter or exit.

In contrast, an open system permits both energy and matter to transfer across its boundaries, allowing it to interact freely with its surroundings. The other options describe attributes either incorrectly or mix definitions, such as stating conditions that do not apply to open or closed systems accurately. Specifically, an isolated system allows neither matter nor energy transfer, which is not the case for either a closed or open system. Therefore, the essential distinction of a closed system allowing energy transfer but restricting matter transfer is what makes the first choice correct.