What are the people or animals in a story called: Characters. When and where the story takes place is called the : Setting. For every problem in the story, there is a : Solution. The trouble that a character has in a story is a: problem. How a character solves a problem is the : Solution. In the story Goldilocks and the Three Bears, Goldilocks, Mama Bear, Papa Bear, and Baby Bear are the: Characters. What is the setting in the story Goldilocks and the Three Bears: A cottage in the woods. What is the problem in the story Goldilocks and the Three Bears: Goldilocks was in the bear's cottage using their things. In the story Goldilocks and the Three Bears, what was the solution: Goldilocks ran away before the bears could eat her