Final answer:
Public goods are associated with externalities, which are considered when conducting cost-benefit analysis to assess the viability of these goods. They are nonexcludable and non-rivalrous, leading to the necessity of government intervention to mitigate the free rider problem.
Step-by-step explanation:
Public goods are typically associated with externalities. The correct answer to the schoolwork question is C. Externalities. Cost-benefit analysis is used to assess whether the benefits of providing a public good outweigh the costs. Public goods are characterized by being nonexcludable and non-rivalrous, meaning they cannot easily exclude non-payers, and one person's consumption does not decrease the amount available for others.
The provision of public goods is challenging for free markets due to the free rider problem, where some consumers enjoy the benefits without contributing to the cost. Government intervention and other mechanisms are needed to ensure public goods are provided and paid for.