I have somewhat of a hard time visualizing what independent means. I can understand that it would mean that the two events do not impact each other, such as flipping 2 coins. I also understand that it would mean that $P(A\cap B)=P(A)\times P(B)$.
So for this example I know that $P(A\cap(A\cup B))=P(A)\times P(A\cup B)$ if they were in fact independent. However, I do not know how to proceed from here. The only additional information given is the following: $P(A)=0.7$ and $P(B|A)=0.5$. However I do not know if this information is relevant.
No. For one thing, $A$ and $\emptyset$ are always independent, but $A$ and $A=A\cup\emptyset$ aren't unless $P(A)=0$ or $P(A)=1$.
As for the more mundane instance of a dice roll, i.e. $\{1,\cdots, 6\}$ with the uniform probability, $A=\{2,4,6\}$ and $B=\{3,6\}$ are independent, but $$P(A\cap (A\cup B))=\frac12\ne \frac12\cdot\frac 23=P(A)\cdot P(A\cup B).$$