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In this Microsoft Word 2016 tutorial, the instructor explains how to create and modify lists. They cover creating bulleted and numbered lists, as well as modifying lists using tab stops. To create a bulleted list, highlight the desired text and go to the Home tab, then click the bullet button in the paragraph group. To change the bullet style, click the button next to it to access different options, including recently used bullets and the bullet library. This allows for customization of the bullet type, such as choosing square black bullets.