Final answer:
Julian's appropriate filing status is Head of Household with one dependent after his divorce and custody arrangement, falling under the Business subject at the College level. The economic scenarios concerning Susan and Jonathon illustrate how income and government support influence work incentives and involve opportunity costs. The correct option is B.
Step-by-step explanation:
The question regarding Julian and Judy's custody and tax scenario falls under the Business subject, specifically dealing with tax law and personal finance, and is appropriate for a College level understanding due to the complexity of tax filing statuses and dependent claims.
The scenario provided about Susan as a single mother with three children and Jonathon as a single father with one child involves complex decision-making based on income and government support, which leans towards a field of study in economics within the Business discipline, also at a College level.
In Julian and Judy's case, Julian's filing status would be Head of Household as he maintains a home for himself and the child, and his total number of dependents would be one, the child. This status is eligible for individuals who are unmarried and have paid more than half of the home's upkeep costs for the year, while also having a qualifying child or dependent.
For Susan and Jonathon's scenarios, a detailed table examination is needed to illustrate the economic impact of their work decisions integrated with the reduction of government support.
The implication of this structure can discourage additional work hours due to the reduction being dollar for dollar on assistance, presenting a situation where their net income may not increase substantially with extra labor. This type of government assistance program can also present opportunity costs, such as time with family or personal development, and can reduce the incentive to work more hours.
Hence, Option B is correct.