According to wikipedia: Traditional stories, expressed as myth, legend, folklore, fairy tale, and fable, are used interchangeably in common speech For more on "fairy Tale" specifically, see: http://en.wikipedia.org/wiki/Fairy_tale

Make believe is generally a part of fairy tales. But you can also have a make believe without a fairy tale. 1) "Verb make believe (idiomatic) To pretend or imagine. Let's build a fort out of chairs and blankets and make believe we are pirates. Adjective make believe (comparative more make believe, superlative most make believe) imaginary; conjured in someone's imagination, especially when imagined by a child" Source and further information: http://en.wiktionary.org/wiki/make_believe 2) "A fairy tale is a fictional story that may feature folkloric characters such as fairies, goblins, elves, trolls, giants, and talking animals, and usually enchantments, often involving a far-fetched sequence of events. In modern-day parlance, the term is also used to describe something blessed with princesses, as in "fairy tale ending" (a happy ending) or "fairy tale romance", though not all fairy tales end happily. Colloquially, a "fairy tale" or "fairy story" can also mean any far-fetched story. Fairy tales commonly attract young children since they easily understand the archetypal characters in the story. In cultures where demons and witches are perceived as real, fairy tales may merge into legendary narratives, where the context is perceived by teller and hearers as having historical actuality. However, unlike legends and epics they usually do not contain more than superficial references to religion and actual places, people, and events; they take place once upon a time rather than in actual times." Source and further information: http://en.wikipedia.org/wiki/Fairy_tale 3) "“A fairy tale is a story-literary or folk-that has a sense of the numinous, the feeling or sensation of the supernatural or the mysterious. But, and this is crucial, it is a story that happens in the past tense, and a story that is not tied to any specifics. If it happens "at the beginning of the world," then it is a myth. A story that names a specific "real" person is a legend (even if it contains a magical occurrence). A story that happens in the future is a fantasy. Fairy tales are sometimes spiritual, but never religious." Lane, Marcia. Picturing a Rose: A Way of Looking at Fairy Tales. New York: H. W. Wilson, 1993." "1. A fairy tale begins with "Once upon a time...” 2. Fairy tales happen in the long ago. 3. Fairy Tales have fantasy and make believe in them. 4. Fairy Tales have clearly defined Good characters vs. Evil characters. 5. Royalty is usually present in a fairy tale, a beautiful princess/handsome prince. 6. There may be magic with giants, elves, talking animals, witches or fairies. 7. Fairy tales have a problem that needs to be solved. 8. It often takes three tries to solve the problem. 9. Fairy tales have happy endings – “they all lived happily ever after.” 10. Fairy tales usually teach a lesson or have a theme" Source and further information: http://mrhermansonenglish.com/fairytalesatireproject.doc