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In this Microsoft Word 2016 tutorial, the instructor explains how to display formatting marks, which help users see non-printing characters in a document. Formatting marks indicate actions like pressing the Enter key or spacebar, as well as section and page breaks, without being printed. To enable these marks, one needs to go to the Home tab, find the paragraph group, and click the "Show/Hide" button for hidden formatting symbols. This feature is particularly beneficial for advanced formatting tasks, such as creating resumes or adhering to APA or MLA styles in Word documents.