The funny comes in when the doctor shows her some of his doll collection which includes dolls "from all walks of life." He then proceeds to show her three dolls: a bride, a house wife and a nurse. Ah, the 50's!
Director Bert I Gordon works a great deal with stories involving either giants or miniatures. Attack of the Puppet People is a good example of a number of 50's films involving these visual tricks of scale including my all-time favorite Them! (1954). He does a great job with this in an era before green/blue screens and CGI became standard fare. The film looks good and is convincing enough to work.
Granted, Attack of the Puppet People pulls no surprises but it is a solid effort nonetheless. If you like this kind of old-fashioned horror, you will definitely enjoy the film.
For more info check out the film's entry in IMDB.