Using definition 1.
smallest(4, [2,6,1])
= smallest(2, [6,1]) (since 4 > 2)
= smallest(2, [1]) (since 2 < 6)
= smallest(1, []) (since 2 > 1)
= 1
Using definition 2.
smallest(4, [2,6,1])
= smallest(min(4,2), [6,1])
= smallest(2, [6,1])
= smallest(min(2,6), [1])
= smallest(2, [1])
= smallest(min(2,1), [])
= smallest(1, [])
= 1