The 'Clean Development Mechanism' under the Kyoto Protocol allows developed countries to: MCQ with Answer and Explanation

Question
The 'Clean Development Mechanism' under the Kyoto Protocol allows developed countries to:
A. tax developing countries
B. avoid all climate action
C. increase emissions
D. earn emission reduction credits by investing in projects in developing countries
Answer: Option D
Solution (By JKSSB Mock Tests)
CDM allows developed countries to earn Certified Emission Reductions by financing emission reduction projects in developing countries.
This question belongs to: Economy GK Economy Set 1
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Practice More Economy Set 1 Questions

Question #1
The 'Gross National Product at market prices' equals GDP at market prices plus:
A. indirect taxes
B. net factor income from abroad
C. subsidies
D. depreciation
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Correct Answer: Option B

Explanation:
GNP at market prices = GDP at market prices + net factor income from abroad.
This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a component of the Human Development Index?
A. Gender equality only
B. Life expectancy, education and per capita income
C. Only income inequality
D. Only environmental sustainability
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Correct Answer: Option B

Explanation:
HDI is a composite index based on three dimensions: a long and healthy life (life expectancy), knowledge (education) and a decent standard of living (GNI per capita).
This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is a component of the capital account of India's balance of payments?
A. Foreign direct investment and portfolio investment
B. Software service exports
C. Remittances from abroad
D. Interest payments on external debt
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Correct Answer: Option A

Explanation:
Foreign direct investment and portfolio investment are capital account transactions. Software exports, remittances and interest payments form part of the current account.
This question belongs to: Economy GK Economy Set 1
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