Really !!  This is a 87' that had the stock carb and everything on it and the sensor hooked up to a blug that is in the wiring harness.
?
Yeah! If you have taken the stock carburator off and put on a phony carb then you don't need the O2 sensor. Actually, you can unplug and chuck your ECM under the dash if you wanted to.
To get the milage back. I'd suggest putting the stock carb back on the car and trouble shoot the problem. I mean, you
had good mileage before something broke, right? Start with checking the O2 sensor as perscribed in the FSM and then move on to the Fuel Mixture Solenoid on the carb.
The FSM has you take the O2 sensor and put it into water. With it in water, you take an resistance measurement. Off hand, I don't remember the ohm range you're looking for. I'm sure someone has that info close at hand.

I hope this helps, Eric