Grad School? What?

So, yesterday one of my professor expressed to me that he really thinks I should be attending grad school for economics. You know, mentioning that, say, six months ago would have been helpful. Regardless, I am beginning to seriously consider applying for grad school in the next year or two. The question: where? For what, exactly? While  he insists it is probably better to go in with an open mind about specialization, I'd like to choose my school with a strength in the specialty I'd take. And herein lies the eternal issue: where can I go that will give me a substantial assistant-ship without sacrificing on the quality of my own education? Also, what about that whole Chinese thing?