No you were not foolish to hang up. You were very wise.
It is a well known scam, they get you to do certain 'tests' on your pc and eventually offer you their Remote Control so that they can 'fix' your pc for you.
They certainly fix it alright, they mess it up and take your bank details either from the pc and/or get you to give them to them to pay for their 'service'
It is a complete SCAM to defraud you.
There is no way Microsoft know what state your pc is in, nor are they interested to know or would ring you up, think about it, how would they know your telephone number?
The scammers often call people who don't even have a pc.