Well... Government in the United States consists of three separate levels: the federal government, the state governments, and local governments..
Developments are inevitable in a given society. Economies will always rise in the long run; the opposite happens very rarely. These economic uptrends are due to developments. For such developments to affect the economy, they definitely have a large impact to the individuals being affected by the company.
For example, the technological development around the world has affected religious cultures. I have seen monks in Thailand who are taking selfies with their smartphones. Although it is not morally wrong, their way of lifestyle has changed because they have to keep up with the developments.
B............................
I would say a. Most flashbacks help readers get some background information on a character