My two-year old has been loving that I bought him a pair of children's scissors. He's not quite gotten the idea of using them correctly (he just cuts once and then tears the rest) but he has been busily making everyone in our family pieces of paper. He'll rip one and say, "A bigger piece."
Sometimes he scribbles on them first and then cuts/tears them.
He's constantly asking for "more paper".
This new hobby of his sure is vastly reducing my supply of scrap paper. But that's ok! It sure does keep him busy!