Honor system eh?
Well, just do your best without cheating. Don't worry so much about the grade because once you go to higher level classes like strengthen and materials, you'll have a stronger knowledge on that stuff.
Man, life is always gonna be unfair and we just have to move on. I remember when I transferred to a university and there were always a big chunk of the class that cheated/worked together in their own ways. For example, in my assembly programming class, there would be about 40% of students who have good networking and find old exams to study.
Blah. I think bottom line is if you just go through school being honest and you will gain more in the end. My younger bro has been in a lot of situations that you've been in but he doesn't cheat and still able to get valedictorian in high school and still maintain a 4.0 until this day in college.