• Please answer whether the following statements are true or false and briefly explain why.

(a) The fact that practicing surgeons who have finished residency earn more than practicing pediatricians implies that the rate of return to choosing surgery exceeds the rate of return to choosing pediatrics for a medical school graduate.

(b). Once length of residency and hours of work are taken into account, the internal rate of return of choosing a specialized branch of medicine over a more generalized branch is roughly equal to the real rate of interest in the economy.