Q: How do I rearrange my layers in ArcGIS?

A: In your Table of Contents (left side window), switch your list type by clicking the buttons directly below the words "Table of Contents". You probably have the second button selected, "List by Source" (it looks like a water jug sitting on top of a tablecloth -- who does these graphics???). Change it by clicking the first button, "List by Drawing Order", which kind of looks like a bulleted list, which I guess makes more sense, graphically, kinda.