Hoe does the climate affect the economy of a country such as Australia?

Answer 1

Aside from agriculture and the like, there seems to be little direct effect. (I assume it is obvious that growing oranges in very cold climates is not likely to be profitable? Ditto for growing lettuce in very dry climates? etc.)

There are theories about economic development proceeding more rapidly in temperate regions, but most of those seem to have been discredited:
http://www.nber.org/papers/w9106

As for Australia, it's economy seems to have been more determined by its natural resources, its relative isolation distance from markets, etc.) and its history than its specific climate.