Edit in JSFiddle

<ul>
    <li>First element of list</li>
    <li class="withborder">Second element of list is longer to illustrate wrapping.</li>
</ul>

ul { 
    background: skyblue; 
    margin: 12px 12px 12px 12px;
    padding: 3px 3px 3px 3px;
}
li { 
    color: black;                
    background: #eee;       
    margin: 12px 12px 12px 12px;
    padding: 12px 0px 12px 12px; 
    list-style: none             
}
li.withborder {
    border-style: dashed;
    border-width: medium;
    border-color: #09c;
}