1. Simplify:

(y^4)(y^3)
-y^1
-y^7
-y^12
-y^43
Im pretty sure its y^12, am i right?

nope,

think about what it means ...

y^4 = yyyy
y^3 = yyy
so (y^4)(y^3) = (yyyy)(yyy) = y^7

when multiplying powers with the same base,
keep the base and add the exponents