The student pilot was being checked on the Motorfalke powered glider. At about 50 feet above ground level after takeoff, the instructor shut the engine down to simulate an engine failure. The student elected to land the glider straight ahead on the remaining runway, and the instructor being satisfied with the students initial actions directed his attention to stopping the propeller in the horizontal position. The student fully opened the spoilers and a high rate of descent was set up. The instructor took control of the glider but was unable to arrest the high rate of descent and a heavy landing resulted.