I think it depends. What are you lying about? Who are you lying to? Are you actually convincing? I think its fine to lie to someone if it could hurt them. Then again, if they find out that you were lying it can make the situation worse. Sometimes honesty is the best choice. Even if it may hurt their feelings, they will most likely be happy you told the truth. If its something serious, I wouldn't lie about it. But if its something little, sure, why not.
I believe there are many places in where you can lie. While I'm not saying its right lying is always a useful skill to have when you are in a pinch. However, the best place where you should NOT lie would be with your friends and family. (well like 95% of the time)
Imagination, without any knowledge of the impossible you test the boundaries and redefine it. Logic is linear and does not question beyond already known concepts, although it may aid in current, defined situations- imagination is able to aid in all!
