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In this video tutorial, the instructor covers how to create and modify lists in Microsoft Word 2016. They demonstrate how to create bulleted and numbered lists, as well as how to modify lists using tab stops. To create a bulleted list, the instructor highlights the desired lines and clicks the bullet button in the Home tab. They also show how to customize the bullet type by expanding the library and choosing from various options. This allows for flexibility in creating unique lists based on personal preference.