How is it that a 10 cent magnet...?

As was mentioned, gravity is a remarkably weak force compared to all the other forces, about 10^39 times weaker than electro-magnetism. There is an experiment that proves at a certain distance from atoms, the other three forces are equal in strength, another theory says that gravity is the only force that can leave our plane of existence. This is string theory, which states that we are on an eleven dimensional universe, one of many, floating in a much higher dimensional universe, and that all things are strings connected to our universe, except gravity, which is a closed string, therefore not connected to the universe and free to leave our universe and act on the next universe. Just a theory, but it's pretty cool.

Magnetism and gravity are not the same forces. Gravity is a weak force but something the size of a planet has enough to keep us all stuck to it. Magnetism is a concentrated force and at close range easily overcomes gravity on ferrous materials.

Because magnetism is a stronger force than gravity. Gravity is a very weak force.

For one thing, the paper clip isn't very strongly affected by earth's gravity. As for how, basically all electrons generate a magnetic field anyway, and when in the presence of a stronger field, they align their fields with it, causing the attraction.