YES

We show the termination of the TRS R:

  app(app(apply(),f),x) -> app(f,x)

-- SCC decomposition.

Consider the dependency pair problem (P, R), where P consists of

p1: app#(app(apply(),f),x) -> app#(f,x)

and R consists of:

r1: app(app(apply(),f),x) -> app(f,x)

The estimated dependency graph contains the following SCCs:

  {p1}


-- Reduction pair.

Consider the dependency pair problem (P, R), where P consists of

p1: app#(app(apply(),f),x) -> app#(f,x)

and R consists of:

r1: app(app(apply(),f),x) -> app(f,x)

The set of usable rules consists of

  (no rules)

Take the reduction pair:

  matrix interpretations:
  
    carrier: N^2
    order: standard order
    interpretations:
      app#_A(x1,x2) = ((1,1),(0,0)) x1
      app_A(x1,x2) = ((0,1),(1,0)) x1 + ((1,1),(1,1)) x2 + (0,1)
      apply_A() = (0,0)

The next rules are strictly ordered:

  p1

We remove them from the problem.  Then no dependency pair remains.