The One With The Home Study - S10-E7
Other mistake: In the opening scene Chandler smiles at Ross' joke while playing with the ball in his hands. Later on in the scene Ross cracks another joke and the exact same scene of Chandler smiling and fiddling with the ball is repeated. (00:00:40 - 00:01:10)
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.