Wow... this was quite the thread to miss out on today. Couple of things to address/retort:
Kev... since you basically quoted my post, I can tell you with 100% certainty, that I would tell the teacher. Doing the right thing isn't always popular, and the popular thing isn't always right. Seriously, integrity is a non-starter for me... you have it, or you don't. There's no "yeah, I act with integrity most of the time ... unless it's in my best interest not to".
Personally, I do the right thing... ALWAYS. Sometime's it's hard to figure out what "the right thing" is, but once you have it figured out, there's no questioning your next move.
As it relates to a dog-eat-dog world, that doesn't meant lie/cheat/steal. Barry... I'm sure it goes without saying that all of the risks you took to elevate your career were done without compromising any moral standards.
On the issue of hiring, and shying away from college grads ... This is a very short-sighted tactic (and unfortunately it's very prevalent in my business/industry too), and is only going to fuck ourselves in ... oh, say 10 years or so, when we don't have a new crop of talent that's been cultivated properly. You know the old saying, you reap what you sow. It is reality though.
Fluffy... part 2 was a great post. To all the students here, school is simply a prep for the rest of your life. If you simply cheated your way through school, all you've done is short-changed yourself, and the rest of your life. Just so you know, you may be able to cheat on a test, but once you're out of school, you can't cheat on life.
And to Chino... dude, if you really think your job prospects are affected by your GPA, and thus your mark in this course, and thus your mark on this exam... your sadly mistaken. However, the measure of anyone's worth is affected by the choices they make, and the actions they take. History is filled with bad deeds by individuals who can "justify" the means.