Combination pliers are two levers which pivot across each other, like scissors. They are operated with one hand. When the handles of combination pliers are pushed together the jaws come together, so they can grip or cut. Opening the handles opens the jaws again.
The long handles balanced against the shorter jaws means they amplify the pressure applied to the handles, so a greater pressure is produced by the jaws. The greatest pressure is produced nearest the pivot point, which is why the cutter is positioned there.
For additional leverage, there are compound action pliers, which have two pairs of levers attached to each other. These have two pivot points and extra linkage, producing more force from the same effort. You can also get high leverage pliers, which simply have longer handles.