Question 1: risk tolerance.
Question 2: risk avoidance.
Explanation: #1: The definition between tolerance and threshold is a distinction that I don't think adds a lot of real value; however, for the purposes of the test, it matters. Tolerance suggests a firm number that you cannot exceed. It is a yes or no equation. In this case, it is 20 days unfavorable variance. Threshold suggests more of a range as you approach your tolerance. In this case, the threshold might be 12 to 16 or 17 days unfavorable variance, which is where you may begin mitigating or contingent activities for recovery. #2: The local rules prohibit the work from taking place at that location. If you choose to do the work anyway, you are taking on risk of getting caught or other adverse consequences. If you did that, you are accepting the risk and possibly mitigating by doing whatever actions to prevent getting caught or minimizing the impact of getting caught. By choosing a new location, you are avoiding that risk.
EDIT: One More Question:
I think PMI would expect the answer to be "transfer." The PMBoK Guide over simplifies risk management to these very simple constructs that are to be used for complex situations. And so, often times, you really have multiple answers that are correct and, even more precise, you are doing several risk treatments at once.
But transfer, as far as PMI is concerned, I think best fits the situation. Not have the right skills is an issue...which becomes a risk factor for performance issues down the line. By outsourcing, you are transferring the probable performance issues to another organization...just like buying insurance. In reality, however, you are mitigating, avoiding, and transferring all at once since not having the right skills has multiple downstream probable impacts. But you have to answer it the way PMI wants you to answer.
This is my opinion of the answers. It is best, the way the questions are framed, to get other opinions, too. I passed the test but did not get all the answers right. :)