That kind of depends on what you mean by "Outlook".

Sure, the program on your desktop computer is fine, but the Outlook app on your phone routes everything through MSFT's servers, so you may be impacted. Outlook.com is running EWS, so it would be down as well.

And finally, if you're talking to a layperson, they're not going to know what Exchange is. They just know they opened Outlook and it isn't working.

No, it doesn't depend. Outlook is an app. If you don't have internet access, do you say Chrome is down?