This is the name I have been accustomed to use for paper that is more widely known as newsprint or scrap paper. I prefer not to use scrap or waste since it is much more important than waste ~ or scrap. It does not always have to go straight to waste either ~ since it is not all the cheap.
Newsprint is normally sold by weight. The bundles are quite floppy, and fairly difficult to carry. The sheets are likely to be slightly damaged during transit. It is fairly strong and has a fair wet strength for a short time ~ after which it will start to disintegrate fairly quickly.
This purchase was for a 12.5kg bundle, and the size is 17"x20" ~ 50x40cm. Other common sizes are 15"x20", and halvings of that. When buying on line do check carefully the size and quantity on offer. As always carriage adds considerably to the cost. For occasional use it is more cost effective to use cheap office paper. That sounds very extravagent ~ check your costings!
I have found the best cutting arrangement to be as shown below ~
Cutting large sheets can be difficult. I find the best way is to take a handful ~ 20 or 30 sheets ~ fold in half and crease down well ~ then cobble cut using a sharp knife. This leaves a slightly ragged edge ~ that does not matter for the intended uses. It can be trimmed off ~ down to A sizes ~ if necessary.
For pasting purposes the margin is just large enough ~ with care ~ and care is something all bookcrafters possess. For rubbing down this size is ideal. I find very often that I use a larger sheet than necessary ~ folding it in half to provide extra usage.
I have noticed that some binders bookbinders use large sheets of chip paper in pad form. Once a full sheet is soiled it is torn and removed. That may sound uneconomic, but after every pasting the chip paper is folded so that all the working surface is clean.
I prefer to pick sheets of the size required from one of two piles close by on the workbench. Whichever suits you the iportant thing is to remove all traces of paste immediately. Several teachers have pointed out to me ~ as a student ~ that in times of stress just dump the soiled sheets on the floor. Home users with nice carpets ~ beware! I prefer ~ if worktop space allows ~ to have a large open-topped tub.
If you are able to puy office paper at a really good price then that makes an excellent and economic alternative ~ even if it runs against common sense.
Chip paper is used for ~
~ pasting 
~ tipping-in 
~ rubbing down 
~ absorbing