Thanks to all who have answered my question (with the exception of Smudge). It was an innocent question, but one that i always wondered if you answered in the negative. I know never to joke when it comes to security questions/immigration. I'd hazard a guess that quite a few regular travellers would also wonder what would happen in that situation, espcecially us British who always get asked the question.
To sum up my answer, the bag/suitcase/package would undergo extra security. In this case i have to agree with this, unlike some of the security we have to go through (but that's a different thread).
BTW Papertiger, we still get asked the three questions in the UK.