Question 1: Consider the questions below

Suppose you are evaluating an opportunity to purchase a condominium in central Bozeman. The condominium has an asking price of $500,500. Your first step in deciding whether to buy the property is to identify your best financing alternative. The condominium is a 2-story unit, with 3 bedrooms and 3 baths. It also has a deck, patio, and a 2-car attached garage with storage space. Assume that this property will be your primary home. Assume that you will have $85,000 available for a down payment and that you plan to close on your loan within 30 years. You are not selling a home in preparation of buying this property.

You are to thoroughly evaluate each of the following loan types (assuming monthly payments on all loans):

1.Adjustable-Rate 3/1 30-Year Mortgage Loan: Initial Rate = 2.875%, Index = Rate on US Treasury Security with same Time-to-Maturity as that of the Outstanding Loan (e.g., at t=36, the Index is the rate on the 27-year US Bond; at t=48, the Index is the rate on the 26-year US Bond; and so on), Margin = 0.750%.

2.Adjustable-Rate 5/1 30-Year Mortgage Loan: Initial Rate = 3.000%, Index = Rate on US Treasury Security with same Time-to-Maturity as that of the Outstanding Loan (e.g., at t=60, the Index is the rate on the 25-year US Bond; at t=72, the Index is the rate on the 24-year US Bond; and so on), Margin = 0.70%.

Question 2: Answer all questions below

Which chart shows the effect of a decrease in income when both video games and e-books are normal goods? (a) A (b) B (d) D 24. Which chart shows the effects of a decrease in income when video games are an Inferior good and e-books are a normal good? A (b) B (c) c (d) D 25. Which chart shows the effects of an increase in the price of video games when video games and e-books are substitutes but not perfect substitutes? (a) A [b) B (c) C D 26. Which chart in the figure shows the effects of an increase in the price of video games when video games and e-books are complements but not perfect complements? A (b) B (c) C (d) DQuestion 34 (1 point) Which statement is false? The discounted value of a loan is similar to the present value of an investment. O Compound interest investments can be modelled with exponential functions Increasing the frequency of the compounding increases the final value of an investment A compound interest investment always gives a greater future value than a simple interest investmentGeneral Balance Sheet Questions If the account is a CURRENT ASSET mark as TRUE: True Inventory False True Temporary Investments False True False Equipment True False Dividends True False Accounts Receivable Long-term Investments False True False Prepaid Insurance True Rent Expense False .True Supplies False True False Cash Which reflects Current Assets in the proper order: Equipment (net) on the balance sheet is the Equipment account balance minus In the Stockholders' Equity section of a Balance Sheet which is listed firstYUGOLIVIIT / & PL Consider the imperfect competition market structures of monopolistic competition and oligopoly. In which market structure(s) will we likely see firms taking advantage of large economies of scale? O Monopolistic competition O Oligopoly O Both of the above O None of the above Question 50 2 pts Consider the imperfect competition market structures of monopolistic competition and oligopoly. In which market structure(s) will we see firms trying to maximize their profits? O Monopolistic competition Oligopoly O Both of the above O None of the above3/4 9. All other things equal, consumer surplus is higher when the demand curve is more ; producer surplus is greater when the supply curve is more A) inelastic, elastic B) inelastic, inelastic C) elastic, elastic D) elastic, inelastic 10. The First Fundamental Theorem of Welfare Economics states that: A) the competitive equilibrium, where supply equals demand, can always be achieved through government intervention