They don't say "I've worked my time for this week I'm leaving", but there are to be sure some of them that work 35 hours a week or less on occassion if not pretty regularly. Coming in late. Leaving early. Taking long lunches. Running errands during the day. Making personal phone calls etc etc etc.
Of course. I have done this many times.
If you put a gun to my head, I would concede that this behavior - behavior I have regularly engaged in myself - is unethical. But then again, if you're supposed to take a (federally mandated) 15-minute break on the clock and you take 18 minutes, that's also unethical. And, strictly speaking, if you write yourself a note on a company post-it and take it home, that too is unethical.
There are obviously shades of gray. I do believe that the answer to B's question is that it is unethical, but more because a boss is asking an underling to short company time without even the pretense that it will be made up for later. But I don't think it's so "unethical" that anyone should actually care.