As I understand, a theory is a set of sentences which are closed under some notion of deduction (i.e., applying deduction rules to the sentences of a theorem does not produce any new sentences) (wikipedia does not mention this notion of closure I think).
In practice, a theory is represented by a subset of its sentences called axioms such that all other sentences in the theory are deducible starting from these axioms and using deduction rules. These axioms are actually a representation of a theory, but not the theory itself. Sentences other than axioms in a theory are called theorems.
My Questions:
1) Is what I presented as a definition of theories, axioms, and theorems in the above correct? (I want to make sure that the notion of closure in the sense I defined above is necessary for the definition of theory or it is not?)
2) If we add an axiom to our existing set of axioms in a theory, does this new axiom extend the theory or it restricts it, or it depends on the axiom?
By extension of a theory $T$, I mean getting $T'$ such that $T \subset T'$ and by restriction I mean getting $T'$ such that $T' \subset T$