The airplane example as stated is problematic. Someone has to account for that screw. If the airline purchases it and their own mechanic does the repair it is a direct part of GDP. If a company is contracted to use the screw while servicing the airplane then the screw would be an intermediate good and would be part of the servicing cost and is included in the total billing price of the contractor's invoice to the airline. Same with tires. When we purchase a new car the tires are an intermediate good and are a part of the selling price of the car. When we replace the tires by going to a tire shop and have them replace the tires, the tires are a direct part of GDP.
The airplane example as stated is problematic. Someone has to account for that screw. If the airline purchases it and their own mechanic does the repair it is a direct part of GDP. If a company is contracted to use the screw while servicing the airplane then the screw would be an intermediate good and would be part of the servicing cost and is included in the total billing price of the contractor's invoice to the airline. Same with tires. When we purchase a new car the tires are an intermediate good and are a part of the selling price of the car. When we replace the tires by going to a tire shop and have them replace the tires, the tires are a direct part of GDP.
Yes, that is a good explanation. Thank you.