An economic theory is

The correct answer is: C. A hypothesis

An economic theory is a statement about the relationship between two or more economic variables. It is a hypothesis that has been tested and supported by evidence.

An axiom is a statement that is assumed to be true without proof. A proposition is a statement that is offered for consideration. A tested hypothesis is a hypothesis that has been tested and found to be true or false.

Here are some examples of economic theories:

• The law of demand states that, all other things being equal, the quantity demanded of a good or service will decrease as the price of that good or service increases.
• The theory of comparative advantage states that a country should specialize in the production of goods and services in which it has a comparative advantage, and trade with other countries for goods and services in which it does not have a comparative advantage.
• The theory of the firm states that a firm will
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