Mileage Question

First things first, if you haven't already give it a tune-up with new plugs, wires, cap, and rotor, check that the carb is working well (no leaks, smooth linkage), check the ignition timing advance, and finally set the valve lash. After you know it's running its best you can try getting a more open exhaust system and a Super Six 2-barrel setup to improve breathing a bit. I'm sure other members can give additional advice...
Agreed!
These simple repairs should yeild 16 to 17 MPG in the city, highway might not change much. But before you spend the money on carb and exhaust upgrades, might I suggest you put an egg between your foot and the gas pedal. :-D

If you can't drive like that and want to spend the money on the carb and exhaust to get more torque, horsepower, throttle response and fuel economy (if driven sainly); drop the pea shooter and go for the Super Six, here's a great article for the swap. http://www.slantsix.org/articles/supersix/article.htm
As for the exhaust, upgrade from the factory 1 7/8" single exhaust to a 2 1/4 single. You could also do a dual exhaust system either using Dutra Duals (http://www.slantsix.org/articles/exhaust-man-mods/exhaust-manifold-mods.htm) or you could go with headers, and there is several options there. Regardless of your choice of headers or manifolds, do a 2" dual with turbo mufflers (http://www.summitracing.com/parts/WLK-17702/) and X-Pipe.