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In this Microsoft Word 2016 tutorial, the instructor covers how to create and modify lists. They demonstrate how to create both bulleted and numbered lists, as well as how to modify lists with tab stops. To create a bulleted list, the user can highlight the desired text and select the bullet button in the Home tab. The user can also customize the bullets by selecting different options in the bullet library. By following these steps, users can easily create and customize lists in Microsoft Word 2016.