G202 EXAM 2 IU KREFT FINAL STUDY
GUIDE 2026 QUESTIONS WITH ANSWERS
GRADED A+
⫸ Key elements of Conflict of Interest Answer: Professional
Private or Personal Interest
Official Duty
⫸ Types of Conflict of Interest Answer: 1. Self-Dealing
2. Influence Peddling
3. Accepting Benefits
4. Misuse of Inside Information
5. Misuse of Employer's Property
6. Outside Employment or Moonlighting
7. Post-Employment
⫸ Self Dealing Answer: Use your position as a professional to secure
personal benefits
⫸ Influence Peadling Answer: Use your position to secure benefits for a
third party (anyone who is not yourself)
,⫸ Accepting Benefits Answer: Receiving bribes or non-monetary gifts
⫸ Misuse of Inside Information Answer: misusing confidential
information
⫸ Misuse of employers property Answer: personally gaining from
employers property without consent
⫸ Outside Employment or Moonlighting Answer: Holding multiple
employment positions at one time, which biases professional behavior
⫸ Post-Employment Answer: holding a sequence of employment
positions where you carry a bias from one job to the next
Ex: Dick Chany VP of USA, used to be CEO of Halliburten and that
company won and award
⫸ Types of Corruption Answer: 1. Petty Corruption
2. Grand Corruption
⫸ Corruption Answer: the abuse of entrusted power for private gain
⫸ Petty corruption Answer: Decisions made by low-level bureaucrats.
, Often centered on local/regional regulations, licenses, or discretionary
spending.
⫸ Grand Corruption Answer: Decisions made by high-level politicians.
Often centered on national policy formation, infrastructure decisions,
military equipment procurement, or allocation of subsidies.
⫸ Foreign Corrupt Practices Act Answer: prohibits US firms from
engaging in grand corruption and limits petty corruption to only those
needed to carry out the daily operations of business
⫸ Perceptions of Corruption Answer: 1. Sand Perception
2. Oil Perception
⫸ Sand Perception Answer: Corruption adds significant cost to doing
business and is associated with four economic threats
⫸ 4 economic threats of sand perception on corruption Answer: 1.
reduced GDP growth
2. reduced foreign direct investment
3. increased income inequality
4. misallocation of government resources
~ sand slows down the wheels of commerce by creating costly frictions
GUIDE 2026 QUESTIONS WITH ANSWERS
GRADED A+
⫸ Key elements of Conflict of Interest Answer: Professional
Private or Personal Interest
Official Duty
⫸ Types of Conflict of Interest Answer: 1. Self-Dealing
2. Influence Peddling
3. Accepting Benefits
4. Misuse of Inside Information
5. Misuse of Employer's Property
6. Outside Employment or Moonlighting
7. Post-Employment
⫸ Self Dealing Answer: Use your position as a professional to secure
personal benefits
⫸ Influence Peadling Answer: Use your position to secure benefits for a
third party (anyone who is not yourself)
,⫸ Accepting Benefits Answer: Receiving bribes or non-monetary gifts
⫸ Misuse of Inside Information Answer: misusing confidential
information
⫸ Misuse of employers property Answer: personally gaining from
employers property without consent
⫸ Outside Employment or Moonlighting Answer: Holding multiple
employment positions at one time, which biases professional behavior
⫸ Post-Employment Answer: holding a sequence of employment
positions where you carry a bias from one job to the next
Ex: Dick Chany VP of USA, used to be CEO of Halliburten and that
company won and award
⫸ Types of Corruption Answer: 1. Petty Corruption
2. Grand Corruption
⫸ Corruption Answer: the abuse of entrusted power for private gain
⫸ Petty corruption Answer: Decisions made by low-level bureaucrats.
, Often centered on local/regional regulations, licenses, or discretionary
spending.
⫸ Grand Corruption Answer: Decisions made by high-level politicians.
Often centered on national policy formation, infrastructure decisions,
military equipment procurement, or allocation of subsidies.
⫸ Foreign Corrupt Practices Act Answer: prohibits US firms from
engaging in grand corruption and limits petty corruption to only those
needed to carry out the daily operations of business
⫸ Perceptions of Corruption Answer: 1. Sand Perception
2. Oil Perception
⫸ Sand Perception Answer: Corruption adds significant cost to doing
business and is associated with four economic threats
⫸ 4 economic threats of sand perception on corruption Answer: 1.
reduced GDP growth
2. reduced foreign direct investment
3. increased income inequality
4. misallocation of government resources
~ sand slows down the wheels of commerce by creating costly frictions
