Just what are "Cut-Outs"?

Depending on how you look at it, the 1963 Western/Whitman Midge Cut-Outs came with two or three dolls.  Blonde and redhead Midges are included.  It's also the first Barbie paper doll set that I have that has all actual Mattel outfits.

The stock number is #1962, the same number as the Barbie set that year.  One of the included "outfits" is the pack black bodysuit and slacks, covered by the apron of the 1963 outfit #953 Barbie Baby Sits.  The way the outfit is designed, Midge can hold the baby.

Some things I have wondered:  Why did Whitman term its earliest paper dolls as "Cut-Outs"?  Was the term "paper dolls" copyrighted and in use by someone else?  Or was Whitman making other items out of lightweight cardboard and heavy paper that could be punched out and put together, such as houses?

On an unrelated note:  I wonder if little girls thought that Midge had a baby and no husband?  Were there complaints by their parents?  Or did no one worry about a toy sending a "message" in 1963?  Remember when pregnant Happy Family Midge was sold in 2003 without Alan, and Wal-Mart pulled the doll from its shelves?

We've seen plenty of Midge dolls wearing Senior Prom,
but very few in Enchanted Evening or Red Flare.

Midge Cut-Outs and Barbie Cut-Outs, both from 1963,
have the same stock number of 1962.

I know of no one who wears all black to baby-sit.
Is Midge concerned that she will get covered in baby food and poop?