The 1978 Corolla came with the 1.6 liter 2TC motor.
The standard model did, but there was also a special edition model economy coupe, advertised as "The Answer".. as in, if everybody drove one of these, there would be no fuel crisis. It came with the 3KC 1200 cc engine, which was originally designed to be used in tractors. 1.2 litres! Heck, they make motorcycles with engines bigger than that!
But I bought one anyway, fresh off the dealership's truck in '77, for $2851 (only new car I ever owned). It wasn't quick, but it did have decent torque for what it was, and got close to 30mpg in an era when that mileage was nearly unheard of. I drove the crap out of that car for over 15 years, with few problems (well, except for that time the left rear wheel/axle came loose and passed me going down the highway, but that's another story). Ended up selling it to a neighbor;s kid for a dollar. He drove it until about a year ago, when it finally gave up the ghost.