In Sass, can you declare two different variables that have the same name and different scope? Describe what happens in such situation.

Yes, you can. When you declare both global and local variable with the same name, the value of the local variable takes precedence over the global variable. However, if you assign a value to the local variable, the global variable value doesn't get rewritten. This concept is called shadowing.

Sass

$color1: lime;

@mixin box($width, $height) {
  $color1 : blue;
  height: $height;
  width: $width;
  border: solid 1px $color1;
  background: lime;
}

.rectangle {
  @include box(30px, 80px);
}

CSS

.rectangle {
  height: 80px;
  width: 30px;
  border: solid 1px blue;
  background: lime;
}