One writes $1, 2, 3, ... 2000$ on the blackboard.
We erase every other number from left, so after one iteration we are left with $2, 4, ... 2000$
Then we erase every other number from right..
We keep repeating to erase from left and right one after another, eventually there is only one number left.
What would be that number?
I wrote a program, unless there is a bug, the answer should be 982. But is there a way to mathematically induce the results, and generalize to arbitrary number (not just 2000?)
Following the suggestion, it seems like for power of 2, the answers go like this
$N=2$, final number is 2
$N=4$, final number is 2
$N=8$, final number is 6
$N=16$, final number is 6
$N=32$, final number is 22
$N=64$, final number is 22
$N=128$, final number is 86
$N=256$, final number is 86
The answer will jump to 4 times previous answer minus 2, for every time we multiply $N$ by 4...
Here's a step, at least, toward a solution.
Let $S(N)$ denote the "surviving" number as a function of $N$. Now after the first pass from left to right, only the even numbers from $2$ up to $2\lfloor N/2\rfloor$ remain. Thus $S(N)$ satisfies the recursion
$$S(N)=2(\lfloor N/2\rfloor+1-S(\lfloor N/2\rfloor))$$
with $S(1)=1$ (i.e., once only one person, that person survives). Let's see first how this works for a power of $2$:
$$\begin{align} S(32)&=2(17-S(16))\\ &=34-4(9-S(8))\\ &=-2+8(5-S(4))\\ &=38-16(3-S(2))\\ &=-10+32(2-S(1))\\ &=54-32\\ &=22 \end{align}$$
Now let's look at $N=2000$:
$$\begin{align} S(2000)&=2(1001-S(1000))\\ &=2002-4(501-S(500))\\ &=-2+8(251-S(250))\\ &=2006-16(126-S(125))\\ &=-10+32(63-S(62))\\ &=2006-64(32-S(31))\\ &=-42+128(16-S(15))\\ &=2006-256(8-S(7))\\ &=-42+512(4-S(3))\\ &=2006-1024(2-S(1))\\ &=2006-1024\\ &=982 \end{align}$$
as the OP found. Whether the recursive formula can be simplified to an explicit closed formula I'll leave to someone else.