Final answer:
The statement is false; the DJIA is a price-weighted average and the index level does not directly reflect average stock prices.
Step-by-step explanation:
If the DJIA stock index is at 1000, this does not mean that the average stock in the index is selling for $100. The statement is False. The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.
A higher DJIA index value generally indicates that the total of the stock prices of the companies in the index has increased, but it's important to note that the DJIA is not a simple average price of stocks. When we look at the performance of the DJIA over time, we can see trends in the stock market; for example, while there wasn't much growth in the 1970s, there was a steady climb in the 1980s and more volatility from 2000 to 2013.