Which of the following statements is (are) correct?
(x) An externality is the uncompensated impact of one person’s actions on the well-being of a bystander.
(y) An example of an externality that causes market failure is the case of a copper refinery that does not bear the entire cost of the smoke it emits.
(z) If an externality, such as air or water pollution, is present in a market, economic efficiency may be enhanced by government intervention that reduces the presence of the pollution.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only
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