An economic theory:Group of answer choicesMust be expressed mathematically.Should be based on a model that is intended to provide a description of the situation of interest that is as comprehensive as possible.Consists of a model and hypotheses.Can be objectively determined to be the correct theory for the situation it is being used to study.

An economic theory consists of a model and hypotheses. It is a simplified framework designed to illustrate complex processes, often but not always, using mathematical techniques. The model is based on a number of assumptions and is a simplified representation of the real world. It is not intended to be a comprehensive description of the situation of interest, but rather to highlight specific aspects that are relevant to the theory.

The hypotheses are statements about the relationships between the variables in the model. They are predictions or conjectures that are based on the model and are often tested empirically.

Whether an economic theory is the "correct" theory for a particular situation is not objectively determinable. Different theories may be more or less useful for understanding different situations, and the usefulness of a theory may also depend on the specific questions being asked. In addition, economic theories are often revised or replaced as new information becomes available and as our understanding of economic processes evolves.