On why the # of choices of an $n$ set with $k$ kiwis is $\dbinom{n}{k}\dbinom{n}{n - k} = \dbinom{n}{k}^2$, AlexR wrote:
No, picking exactly $k$ kiwis means you discount the $n-k$ remaining kiwis, but you still have to chose $n-k$ figs out of $n$, which is the second factor.
$1.$ I don't understand AlexR's answer. So I add a picture: 
Why isn't the # of ways of choosing an $n$ set with $k$ kiwis $ \dbinom{n}{k}$?
I know that $\dbinom{n}{k} = \dbinom{n}{n - k}$, which signifies: Out of any selection of $n$ fruits, as soon as you select $k$ kiwis, you simultaneously (de)select the $n - k$ figs.
But doesn't $\dbinom{n}{k}$ signify both the selection of kiwis and deselection of figs? So isn't multiplying $\dbinom{n}{k}$ by $\dbinom{n}{n - k}$ redundant?
$2.$ Moreover, how would you determine whether to use $\dbinom{n}{k}\dbinom{n}{n - k}$ or $\dbinom{n}{k}$ ?
This post is a conversion of my comments to an answer.
The confusion lies in the paragraph beginning with "I know that..." The equality of $\binom{n}{k}$ and $\binom{n}{n−k}$ corresponds with the fact that when you select $k$ items from a set of size $n,$ you are, at the same time, deselecting $n−k$ items from that same set. So in your example, when you take $k$ kiwis, you are simultaneously not taking $n−k$ kiwis. As yet, no selection or deselection of figs has taken place. To account for that, you need a second binomial coefficient.
The simple answer to your question two is that you will use a product of two binomial coefficients when you are independently selecting from two different sets; you will use a single binomial coefficient when you are selecting from one set.
One factor possibly contributing to confusion here is that $n$ plays several distinct roles in this problem: it is the size of the set of kiwis; it is also the size of the set of figs; furthermore, it is the size of the set of selected fruits. It may help to generalize the problem: let there be $r$ kiwis and $s$ figs; select $n$ of those fruits in such a way that there are $k$ kiwis. In this version, selecting $k$ kiwis deselects $r−k$ kiwis. But selecting $n$ fruits, $k$ of which are kiwis, entails selecting $n−k$ figs (and deselecting $s−n+k$ figs).