According to the instructions printed by the test/jdk/java/awt/print/PageFormat/SmallPaperPrinting.java, there should be three sets of @test tags to test the three cases.

----------------- Instructions --------------------
Arguments: (none) - paper width=1, height=.0001
              1 - paper width=.0001, height=1
              2 - paper width=-1, height=1
A passing test should catch a PrinterException
and should display "Print error: (exception msg)".
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The test catches PrinterException but it doesn't verify the message; for example, when there's no printer, the test passes, which is unexpected.

In the third case, when 2 is passed, the test doesn't fail for me. Is it expected?

The issue found during code review for JDK-8320608:
https://github.com/openjdk/jdk/pull/16785#discussion_r1403283083