A tag is a keyword or label that categorizes your question with other, similar questions. Using the right tags makes it easier for others to find and answer your question.

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The process by which users can vote a question re-opened if it is closed due to some users seeing it as off-topic or otherwise disallowed by the /faq.
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the primary way users gain reputation, and also how many items are sorted to the top.
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For general questions about the Winter Bash (or holiday hats) to celebrate the end of the year.
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For the suggestion of improvements to the phrasing of text shown to users by the Stack Exchange engine.