The One With a Chick. And a Duck. - S3-E21
Revealing mistake: When Joey comes in with the shoebox containing the chick, it looks like a normal sized box, about 5 - 6 inches deep. But when Joey takes the lid off, we can see that the chick must be elevated on something inside the box, since we can see its entire body. Surely, the chick can't be more than 6 inches tall? (00:05:05)
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.