the trick to this question is to look at the restriction they place on x and y
in the example, you are to examine "when x^2 + y^2 is at a minimum"
since all (real) numbers are positive when squared, the way to minimize this expression is to look at where x^2 and y^2 are the least, which will always be at zero (0).
thus, the answer to x^3-y^3 will be 0-0 or 0.
in general, you can use the same values for x and y when there is no substantive difference between them in the formula. for example, in the formula (x+y) / xy , x and y can be switched without effect. whereas in (x-y) / xy , they cannot be interchanged.