Get ready for the UCF PSY2012 General Psychology Exam. Practice with hints and explanations to improve your understanding. Master your exam preparation today!

Episodic memory refers to the ability to recall specific events or experiences from one's past, including the context in which they occurred, such as the time and place. Your third birthday party is a clear example of an episodic memory because it involves a personal event that you can vividly remember, including the details of the celebration, the people who were present, and your feelings during that time.

In contrast, the capital of a country represents a factual memory and falls under semantic memory, which is related to the knowledge of facts, concepts, and information that one can recall. A learned skill, such as riding a bike, pertains more to procedural memory, which involves memories of how to perform tasks. A favorite book might evoke personal feelings or preferences but does not embody a specific episodic event from your life, as it is more related to a general preference or recognition of the book itself rather than an instance of experiencing it. Therefore, recalling your third birthday party exemplifies episodic memory perfectly due to its personal and contextual nature.