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Please read the following passage and select answer the following question: In 2018, a new word entered Silicon Valley's lexicon: the "tech-lash", or the risk of a consumer and regulatory revolt against big tech. Today that threat seems empty.
  1. Please read the following passage and select answer the following question:
Explanation

Please read the following passage and select the answer to the following question:

In 2018, a new word entered Silicon Valley's lexicon: the "tech-lash", or the risk of a consumer and regulatory revolt against big tech. Today, that threat seems empty. Even as regulators discuss new rules and activists fret about the right to privacy, the shares of the five biggest American tech firms have been on a jaw-dropping bull run over the past 12 months, rising by 52%. The increase in the firm's combined value, of almost $2trn, is hard to get your head around: it is roughly equivalent to Germany's entire stock market. Four of the five— Alphabet, Amazon, Apple and Microsoft— are each now worth over $1trn. (Facebook is worth a mere $620bn). For all the talk of a tech-lash, fund managers in Boston, London and Singapore have shrugged off and moved on. Their calculus is that nothing can stop these firms, which are destined to earn untold riches.

This surge in tech giants' share prices raises two worries. One whether investors have stoked a speculative bubble. The five firms, worth $5.6trn, make up almost a fifth of the value of the S&P 500 index of American shares. The last time the market was so concentrated was 20 years ago, before a crash that triggered a widespread downturn. The other, opposite concern is that investors may be right. The big tech firms' supersized valuations suggest that their profits will double or so in the next decade, causing far greater economic tremors in rich countries and an alarming concentration of economic and political power.

The fund managers have continued to invest in the 5 big-tech firms despite talks of a tech lash.

  • No

  • Yes

  • Can't say

    Explanation:  

    The passage clearly states:  

    "For all the talk of a tech-lash, fund managers in Boston, London and Singapore have shrugged off and moved on."  

    This means they continued to invest in the big-tech firms despite the concerns.


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