Thank you very much Robby for the quick reply! I should have mentioned that 
our students are using Beginning Student by setting the Language to that, 
rather than adding #lang htdp/bsl. It appears this makes a difference. So 
the whole file looks like:

;; The first three lines of this file were inserted by DrRacket. They 
record metadata
;; about the language level of this file in a form that our tools can 
easily process.
#reader(lib "htdp-beginner-reader.ss" "lang")((modname file) 
(read-case-sensitive #t) (teachpacks ()) (htdp-settings #(#t constructor 
repeating-decimal #f #t none #f () #f)))
(define (quasiquote x) x)
(define (f x) 123)
`(f 888)

Running this file in command line with "racket file.rkt" doesn't show any 
errors for me. I'm using DrRacket 7.8 if it matters.

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