When considering whether to hit or stand on a 16 against a dealer's 7, it's generally better to hit. The dealer is likely to have a strong hand and the risk of busting with a hit is outweighed by the need to improve your hand. Standing on 16 against a 7 puts you at a significant disadvantage since you're likely to lose against the dealer's potential higher total. Thus, hitting is the more strategic choice in this scenario.