 There are only two possible β-reductions to be done here, on x and on y.Reducing the outer x term first results in the inner y term being duplicated, and each copy will have to be reduced, but reducing the inner y term first will duplicate its argument z, which will cause work to be duplicated when the values of h and w are made known.Incidentally, the above term reduces to the identity function (λy.y), and is constructed by making wrappers which make the identity function available to the binders g=λh..., f=λw..., h=λx.x (at first), and w=λz.z (at first), all of which are applied to the innermost term λy.y.