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It's how engines sizes are indexed. If you were to take the internal volume of your engine and fill it up with water, it would total 1.8 liters. The Ford 302 is 5.0 liters. 1.8 L is the displacement of the engine - the volume of all four cylinders. It is a basic measure of the relative size of different engines. All things being equal (they aren't, really) a larger displacement engine will pull harder.
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