A Lorenz Curve Suppose there is a country with only five households (families). The five households' yearly incomes are $8,000, $12,000, $20,000, $40,000, and $80,000. To find the percentages, use: household income + total income x 100. 1. What is the total income in this society? $ What percentage of total income is earned by the poorest fifth? % What percentage of total income is earned by the second fifth? 4. What percentage of total income is earned by the third fifth? 5. What percentage of total income is earned by the fourth fifth? 6. What percentage of total income is earned by the richest fifth? % 7-10. Construct a Lorenz curve for this five-household economy. Lorenz Curve 100 80 60 Percentage of Income 40 20 0 20 40 60 80 100 Percentage of Households With a Lorenz curve, you may also further break down households into smaller percentages. Let's say there are four earners in the richest household. We can then break down the richest household by person: the first person earns $8,000, the second person earns $12,000, the third person earns $20,000, and the final person earns $40,000. 11. What percentage of the top household's income does the top earner have