Step 1: Recall first law of thermodynamics.
The first law of thermodynamics is:
\[
\Delta U=q+w.
\]
Here:
\[
\Delta U=\text{change in internal energy},
\]
\[
q=\text{heat absorbed by the system},
\]
and:
\[
w=\text{work done on the system}.
\]
Step 2: Identify heat sign.
The system absorbs \(500\ J\) heat.
Heat absorbed by the system is taken as positive.
So:
\[
q=+500\ J.
\]
Step 3: Identify work sign.
Work of \(200\ J\) is done by the system.
Work done by the system is taken as negative because energy leaves the system.
So:
\[
w=-200\ J.
\]
Step 4: Calculate \(\Delta U\).
\[
\Delta U=q+w
\]
\[
\Delta U=500+(-200)
\]
\[
\Delta U=300\ J.
\]
Therefore, the change in internal energy is:
\[
300\ J.
\]