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From P55 Chapter 5.1 Basics (of lambda-calculus)
Bound
An occurrence of the vairable x is said to be bound when it occurs in the body t of an abstraction $\lambda x.t$
Free
An occurrence of x is free if it appears in a position where it is not bound by an enclosing abstraction on x. For example x in x y and $\lambda y. x y$
Closed
A term with no free variables is said to be closed; closed terms are also called combinators. The simplest combinator, called the identity function $id = \lambda x.x;$
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