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For example, Chief of the Foundry has an ability that says:

Other artifact creatures you control get +1/+1.

If I were to cast a 1/1 Artifact Creature it would enter the battlefield as a 2/2 due to the Chief of the Foundry's continuous effect.

  1. Am I correct that continuous effects do not normally apply to cards in your hand?

Ex: I believe that in my hand that same Artifact Creature would be considered to be a 1/1.

  1. What would its power and toughness be on the stack?

Ex: In response my opponent casts an instant that says:

Counter target creature spell with power 1 or less.

Would the Artifact Creature be a legal target for that counter spell?

  1. Would the Artifact Creature card be affected in other zones? (Graveyard, Library, Exile, etc.)
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The creature card would have 1 power and 1 toughness in all zones other than the battlefield

609.2. Effects apply only to permanents unless the instruction’s text states otherwise or they clearly can apply only to objects in one or more other zones.

The only things that can change a creature card's power/toughness off of the battlefield are Characteristic-Defining Abilities, like what Tarmogoyf has.

208.2a The card may have a characteristic-defining ability that sets its power and/or toughness according to some stated condition. ... This ability functions everywhere, even outside the game. ...

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  • Thanks, that Tarmogoyf example is actually what made me wonder about this.
    – bpeav
    Jul 28, 2015 at 21:03
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    To explain my edit: creatures only exist on the battlefield. In every other zone, they are creature cards. I can't find this spelled out in the rules, but it is obvious if you consider the fact that you cannot target creatures in the graveyard with, for example, a Lightning Bolt.
    – Rainbolt
    Jul 28, 2015 at 22:14
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    @Rainbolt you're right, I think the appropriate rule is the 109.2 that murgatroid quoted
    – diego
    Jul 28, 2015 at 22:16
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Effects like the one in your post refer only to permanents on the battlefield. Rule 109.2 says

If a spell or ability uses a description of an object that includes a card type or subtype, but doesn't include the word "card," "spell," "source," or "scheme," it means a permanent of that card type or subtype on the battlefield.

The other cases (when the spell or ability does use one of the mentioned words) can affect other zones.

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