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Drop-down lists in Microsoft Word allow users to select from predefined options, similar to those on the web, and are useful for conducting surveys or controlling input. To create a drop-down list, enable the Developer tab in the ribbon via the file menu, then choose "Customize Ribbon." You can then create and modify the list based on your needs. For instance, in a survey about office equipment usage, you can set options for users to select which office table they use most and how frequently. This feature helps streamline data collection and user interaction effectively.