Answer: 8
Steps:
Since the four digit number cannot start with a 0, it has to start with a 2. So we are left with determining the number of ways to fill the rest 3 digits using only 0's or 2's. 2xxx.
For the third digit position, there are 2 choices (0 or 2) , for each of these, there are 2 choices at the second digit, and for each such choice there are 2 possible choices for the first digit. The total of possibilities is 2*2*2=2^3=8.
Interestingly, this is the same number of possibilities encoded in 3 bits in the binary system.