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In this Microsoft Word 2016 tutorial, the instructor covers how to create and modify lists. The video demonstrates creating bulleted and numbered lists and modifying them using tab stops. To create a bulleted list, highlight the desired text, go to the Home tab, and click the bullet button in the paragraph group. It automatically adds circular black bullets, but you can choose different bullet types from the library. You can also define a new bullet based on an image or any other content.