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Drop-down lists in Microsoft Word allow users to choose from predefined options, making them useful for surveys and controlling user input. To create and modify a drop-down list, first enable the Developer tab in the Ribbon by accessing the File menu, selecting Options, and then customizing the Ribbon. Once the Developer tab is enabled, you can create a new drop-down list for surveys, such as asking users about their preferred office equipment. This functionality helps streamline data collection by offering a structured way for users to provide feedback.