Is it okay for your child to eat paper and chalk?

No, it's not OK. The first thing that came to my mind was Pica. Pica is a tendency or craving to eat substances other than normal food (such as paper, chalk, clay, plaster, or ashes), occurring during childhood or pregnancy, or as a symptom of disease. Often children who are deficient in Iron have these type of issue. The child should be checked for anemia (lowered iron in the blood).